Paying attention to the 4-hour chart, you will notice that:
- since the beginning of the Asian session, bearish sentiments dominate in the GBPUSD currency pair,
- at the same time, the bears do not have enough strength to break through the support level 1.37175.
Now let’s look at the indicators:
- The currency has consolidated below the moving averages with periods of 34, 55, 89 and 144, which are now a series of resistance levels 1.3748, 1.3796, 1.3842 and 1.38715.
- The MACD histogram is in the negative zone and below its signal line, continues to decline intensively and thus gives a signal to sell the British pound (GBP).
- Stochastic Oscillator has partially come out of the oversold zone and is giving an opposite signal, as the% K line rises above the% D line.
Due to the contradiction in the signals provided by the indicators, as well as the slowdown in the decline in quotations, 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 support level 1.37175, which can open the way to the levels of 1.3670, 1.36425 and 1.3609.
Otherwise, the bulls may seize the initiative, and their targets may be the levels 1.3781, 1.3822 and 1.38645.
Resistance levels: 1.3743 / 48, 1.3754, 1.3781, 1.3796, 1.3822, 1.3842 / 46, 1.38645
Current price: 1.3726
Support levels: 1.37175, 1.3705, 1.3682, 1.3670, 1.36425, 1.3609, 1.35715
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