Pound / dollar went down – so far this is just a correction

Paying attention to the 4-hour chart, you will notice that:

  • at trading on Thursday, during the European session, our first two targets (1.3600 and 1.3620) were worked out,
  • in the area of ​​1.3607 – 1.36235, a noticeable resistance was formed for the British pound (GBP), after which a downward correction began.

Now let’s look at the indicators:

The currency remains well above the moving averages with periods of 34, 55, 89 and 144, which are directed upward and indicate continued bullish sentiment (in the medium term), as well as a number of support levels 1.3409, 1.3391 / 90 and 1.3354.

The MACD histogram is still in the positive zone, but it is already trying to cross its signal line from top to bottom and thereby generate a signal to sell the British pound (GBP).

Stochastic Oscillator has rapidly come out of the overbought zone and is already giving such a signal, as the% K line goes down below the% D line.

Despite only one clear signal, we expect the downward correction to continue, with potential targets at 1.34525, 1.34085 and 1.3344.

Cancellation of the ‘correctional scenario’ will occur if the currency rate consolidates above the mirror level of 1.3526, after which the quotes may head to the levels of 1.35845, 1.36235 and 1.3680.

Let us remind Forex traders that today at 10:00 Moscow time. will be published data on retail sales in the UK, which may have a noticeable impact on the further course of trading.

Resistance levels: 1.3526, 1.35545, 1.35845, 1.3607, 1.36235, 1.3650, 1.3680, 1.3700 / 10

Current price: 1.3521

Support levels: 1.34705, 1.34525, 1.34085, 1.3391 / 90, 1.33865, 1.3354, 1.3344, 1.3318

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