Paying attention to the 4-hour chart, you will notice that:
- yesterday at trading in Europe, in the GBPUSD currency pair, one could observe a surge in bearish sentiment, as a result of which our first two alternative targets (1.40825 and 1.40485) were worked out,
- the decline in quotations slowed down only at around 1.40335, after which the British pound (GBP) corrected sharply,
- Since about the middle of the American session, trades have been held with low volatility.
Now let’s look at the indicators:
- The currency remains below the moving averages with periods of 34, 55, 144 and 89, which are the range of resistance levels 1.41215, 1.41315, 1.41425 and 1.4146.
- The MACD histogram is still in the negative zone and below its signal line, but it began to move almost parallel to the time axis and is not forming clear signals at the moment.
- Stochastic Oscillator is in the neutral zone and is giving a buy signal for the British Pound (GBP), as the% K line rises above the% D line.
Since trusting only one clear signal is extremely risky, and also due to the absence of a pronounced trend, then as confirmation that bullish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the mirror level of 1.4086, which can open the way to the levels 1.4113, 1.41555 and 1.4185.
Otherwise, the rate of the GBP / USD currency pair will move within the price range of 1.40675 – 1.4086.
An alternative (‘bearish’) scenario will be ‘activated’ in the event of a breakdown of the support level 1.40675, after which the quotes may decline to levels 1.40335, 1.4006 and 1.3939.
We remind Forex traders that today you should pay attention to a number of important events, which 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 FOMC decision on the main interest rate will be announced, as well as an accompanying statement to it; at the same time, the economic forecast from the FOMC will become available,
- at 21:30 Moscow time. the FOMC press conference will begin.
Resistance levels: 1.4086, 1.4113, 1.41215, 1.4128, 1.41315
Current price: 1.4081
Support levels: 1.40675, 1.40335, 1.4006, 1.3939
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