Paying attention to the 4-hour chart, you will notice that:
- Since about the middle of the American session on Tuesday, bearish sentiments have been dominating in the GBPUSD currency pair,
- at the same time, the bears do not have enough strength to break the support level 1.4112.
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 directed upward and indicate continued bullish sentiment (in the medium term), as well as a number of support levels 1.39945, 1.3956, 1.3931 and 1.38825.
- The MACD histogram is still in the positive area, but already below its signal line, continues to decline smoothly and thus gives a signal to sell the British pound (GBP).
- Stochastic Oscillator has partially come out of the overbought zone and is giving a similar signal, as the% K line goes below the% D line.
Despite two identical and clear signals, as a confirmation that bearish sentiment may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the support level 1.4112, which can open the way to the levels 1.40435, 1.40025 and 1.3953.
Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.4164, 1.4200 and 1.4241.
Let us 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. will be published data on changes in the volume of UK GDP,
- at 15:30 Moscow time. US inflation data will become available,
- at 17:00 Moscow time. Bank of England Governor Andrew Bailey will deliver a speech at the 35th Annual General Meeting of the International Swaps and Derivatives Association (ISDA).
Resistance levels: 1.41405, 1.4164 / 66, 1.4181, 1.4200, 1.4241
Current price: 1.4116
Support levels: 1.4112, 1.40895, 1.40435, 1.40245, 1.40025
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