Paying attention to the 4-hour chart, you will notice that:
- from the early morning, bearish sentiments dominate in the GBPUSD currency pair,
- the currency rate ‘uncertainly’ consolidated below the mirror level of 1.37665.
Now let’s look at the indicators:
- The currency rate is sandwiched between moving averages with periods of 55, 89 and 144 (a range of resistance levels 1.37765, 1.38295 and 1.3859) on the one hand and an average with a period of 34 (support level 1.37585) on the other.
- The MACD histogram is located above its signal line, has practically merged with the zero line and is not giving clear signals at the moment.
- Stochastic Oscillator is in the neutral zone and is giving a signal to sell the British Pound (GBP), as the% K line falls below the% D line.
Despite only one clear signal, we expect the bearish offensive to continue, with potential targets at 1.37175, 1.3670 and 1.36425.
The ‘bearish scenario’ will be canceled if the currency rate consolidates above the mirror level of 1.37665; in this case, further targets of the bulls will be the levels 1.37995, 1.3822 and 1.38645.
Resistance levels: 1.37665, 1.37765, 1.3788, 1.37995, 1.3822, 1.38295, 1.3846, 1.3859, 1.38645
Current price: 1.3762
Support levels: 1.37585, 1.3743, 1.37175, 1.3705, 1.3682, 1.3670, 1.36425, 1.3609, 1.35715
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