GBPUSD Stuck Around Multi-Month Highs

Paying attention to the 4-hour chart, you can see that from about the middle of the American session on Tuesday, the GBPUSD currency pair continues to consolidate with low volatility.

Now let’s look at the indicators:

  • The currency remains well above the moving averages with periods of 34, 55, 89 and 144, which are near the support levels of 1.41105, 1.40715, 1.4005 and 1.39585.
  • The MACD histogram is still in the positive area and above its signal line, but began to decline very smoothly and thus indicates a possible strengthening of bearish sentiment.
  • Stochastic Oscillator has partially come out of the overbought zone and is giving a signal to sell the British Pound (GBP), as the% K line falls below the% D line.

Since trusting only one clear signal is extremely risky, then as a confirmation that bearish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the support level 1.4179, which can open the way to the levels 1.41505, 1.41295 and 1.4106.

Otherwise, consolidation will continue.

An alternative (‘bullish’) scenario will be ‘activated’ in the event of a breakdown of the resistance level 1.42105, which may open the way to levels 1.4241, 1.42775 and 1.43445.

We remind Forex traders that today they should pay attention to a number of important events that can have a significant impact on the further course of trading:

  • at 09:00 Moscow time. UK inflation data will be published,
  • at 21:00 Moscow time. the publication of the minutes of the Fed meeting will take place.

Resistance levels: 1.41925, 1.42105, 1.42195, 1.4241, 1.42775, 1.43445, 1.4376

Current price: 1.4187

Support levels: 1.4179, 1.4164, 1.41505, 1.41295, 1.41105, 1.4106, 1.4089, 1.4077

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