Paying attention to the 4-hour chart, you will notice that:
- at trading on Tuesday, the breakdown of the mirror level 1.3902 led to a noticeable strengthening of bearish sentiment, and the development of our alternative targets (1.3845 and 1.3812) was completed towards the end of the American session,
- there is strong support for the British pound (GBP) at 1.3819.
Now let’s look at the indicators:
- The currency rate is sandwiched between a moving average with a period of 144 (resistance level 1.38425) on the one hand and averages with periods of 34, 89 and 55 (a series of support levels 1.3821, 1.3812 and 1.3800) on the other.
- The MACD histogram is still in the positive zone, but already below its signal line, continues to decline smoothly and thus gives a signal to sell the British pound (GBP).
- The Stochastic Oscillator is close to the oversold zone and is not generating clear signals at the moment, since the% K line is moving parallel to the time axis.
Since it is extremely risky to trust only one clear signal, then as confirmation that bearish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the strong support level 1.3819, which can open the way to the levels 1.37665, 1.37175 and 1.3682.
Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.3902, 1.3960 and 1.3994.
We remind forex traders that today at 21:00 Moscow time. the publication of the minutes of the FRS meeting will take place, which may have a significant impact on the further course of trading.
Resistance levels: 1.3833, 1.38425, 1.38535, 1.3902, 1.39225, 1.3960, 1.3994
Current price: 1.3823
Support levels: 1.3821, 1.3819, 1.3812, 1.3800, 1.37665, 1.3745, 1.37175, 1.3705, 1.3682
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