Paying attention to the 4-hour chart, you will notice that:
- for a long period of time there is no clear trend in the GBPUSD currency pair,
- from Tuesday afternoon, the strengths of the bulls and bears are approximately equal.
Now let’s look at the indicators:
- The currency remains below the moving averages with periods of 55, 34, 89 and 144, which are directed downward and indicate continued bearish sentiment (in the medium term), as well as a series of resistance levels 1.3900, 1.3907, 1.3979 and 1.4050.
- The MACD histogram is still in the negative zone and slightly below its signal line, but it started moving almost parallel to the time axis and is not giving clear signals at the moment.
- Stochastic Oscillator has come out of the oversold zone and is giving a buy signal for the British Pound (GBP), as the% K line rises above the% D line.
Since trusting only one clear signal is extremely risky, and also due to the absence of a pronounced trend, then as a confirmation that bullish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the resistance level 1.3864, which can open the way to the levels 1.39245 and 1.3980.
Otherwise, the bears may seize the initiative, and their targets will be the levels 1.3791 and 1.3749.
Resistance levels: 1.3864, 1.3879, 1.3900 / 07, 1.39245, 1.3939, 1.3980
Current price: 1.3846
Support levels: 1.3822, 1.3791, 1.3784, 1.3749, 1.36895, 1.36695
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