Paying attention to the 4-hour chart, you will notice that:
- in the afternoon of last Friday, as well as tonight, bearish sentiment dominated in the GBPUSD currency pair,
- at 1.37495, a ‘fragile’ support for the British pound (GBP) formed, after which consolidation began.
Now let’s look at the indicators:
- The exchange rate has consolidated significantly below the moving averages with periods of 55, 89, 34 and 144, which are now a series of resistance levels 1.3823 / 235, 1.38375 and 1.3868.
- The MACD histogram is still in the negative zone and below its signal line, continues to decline intensively and thus gives a signal to sell the British pound (GBP).
- The Stochastic Oscillator is in the oversold zone and is currently not generating clear signals, since the% K line is moving parallel to the time axis and has also crossed the% D line.
Since trusting only one clear signal is extremely risky, and also due to the fact that the decline in quotations has slowed down, then as a confirmation that bearish sentiments may again increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the support level 1.37495, which could open the way to levels 1.36895 and 1.36695.
Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.3808 and 1.38585.
Resistance levels: 1.37775, 1.3808, 1.3821 / 23/235, 1.38375
Current price: 1.3755
Support levels: 1.37495, 1.3731, 1.36895, 1.36695
Market forecasts, analytics and stock news