Paying attention to the 4-hour chart, you will notice that:
- in the afternoon of last Friday, bullish sentiment dominated in the GBPUSD currency pair,
- the growth of quotations slowed down when approaching the strong resistance level of 1.38525, after which consolidation began.
Now let’s look at the indicators:
- The currency remains markedly below the 34, 55, 89 and 144 moving averages, which are directed downward and indicate continued bearish sentiment (in the medium term), as well as a series of resistance levels 1.3830, 1.3869, 1.3909 and 1.3999.
- The MACD histogram is still in the negative zone, but already above its signal line, continues to grow rapidly and thus gives a signal to buy the British pound (GBP).
- The Stochastic Oscillator is almost at the border of the overbought area and is currently not forming clear signals, since the% K line began to move towards the% D line.
Since trusting only one clear signal is extremely risky, and also due to the fact that the growth of quotations has slowed down, as a confirmation that bullish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the strong resistance level of 1.38525, which could open the way to levels 1.39245 and 1.3980.
Otherwise, the rate of the GBP / USD currency pair will move within the 1.3810 – 1.38525 price range.
An alternative (‘bearish’) scenario will be ‘activated’ in the event of a breakdown of the mirror level 1.3810, after which the quotes may decline to levels 1.3754 and 1.36895.
Resistance levels: 1.3830 / 31, 1.38525, 1.3869, 1.3879, 1.3909, 1.39245
Current price: 1.3820
Support levels: 1.3810, 1.3779, 1.3754, 1.3731, 1.36895, 1.36695
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