Paying attention to the 4-hour chart, you will notice that:
- at trading on Thursday, the breakdown of the mirror level 1.41185 led to a significant increase in bullish sentiment, and the development of our targets (1.4185 and 1.4210) ended at the end of the American session; from the point of view of fundamental analysis, the British pound (GBP) received support after the member of the ILC of the Bank of England Gertyan Vliege spoke about the timing of a possible increase in the Official Bank Rate,
- the bulls once again lacked strength to break through the strong resistance level of 1.4210, after which consolidation began.
Now let’s look at the indicators:
- The exchange rate has consolidated noticeably above the moving averages with periods of 34, 55, 89 and 144, which are now a range of support levels 1.41585 / 565, 1.41285 and 1.4040.
- The MACD histogram crossed the zero line from the bottom up yesterday evening, is now located in the positive area and above its signal line, continues to increase intensively and thus gives a signal to buy the British pound (GBP).
- Stochastic Oscillator headed for the exit from the overbought zone and is forming an opposite signal, although it is not clear yet, since the% K line has just crossed the% D line from top to bottom, but has not yet begun to go below it.
Due to the conflicting signals that the indicators provide, as well as the ongoing consolidation, the most correct decision now is to focus on the nearest significant levels of support and resistance.
A ‘bullish’ scenario will be ‘activated’ in the event of a breakout of the strong resistance level 1.4210, which could open the way to levels 1.4241 and 1.42775.
The ‘bearish’ scenario will begin to materialize in the event of a breakdown of the mirror level 1.4185, after which the quotes may decline to levels 1.41375 and 1.41185.
Resistance levels: 1.4210, 1.4233, 1.4241, 1.42775, 1.43445, 1.4376
Current price: 1.4195
Support levels: 1.4185, 1.41585 / 565, 1.41375, 1.41285, 1.41185, 1.4105
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