Paying attention to the 4-hour chart, you will notice that:
- in the area of 1.39365 – 1.3949 there is a noticeable resistance for the British pound (GBP),
- from the early morning, bearish sentiments dominate in the GBPUSD currency pair.
Now let’s look at the indicators:
- The currency rate remains well above the moving averages with periods of 34, 55, 89 and 144, which are a number of support levels 1.3877, 1.38245, 1.38205 and 1.38025.
- The MACD histogram is still in the positive zone and below its signal line, continues to decline smoothly and thus gives a signal to sell the British pound (GBP).
- The Stochastic Oscillator is in the neutral zone and at the moment does not form clear signals, since the% K line moves parallel to the time axis, and has also practically merged with the% D line.
Despite only one clear signal, we expect that the pressure on the British pound (GBP) may increase, and potential bearish targets are located at 1.3876, 1.38505 and 1.3815.
Cancellation of the ‘bearish scenario’ will occur in case of breakdown of the resistance area 1.39365 – 1.3949, which may open the way to the levels of 1.3981, 1.4006 and 1.4060.
Resistance levels: 1.39365, 1.3949, 1.3957, 1.3981, 1.40025, 1.4006, 1.4060, 1.4111
Current price: 1.3927
Support levels: 1.39105, 1.3885, 1.3877 / 76, 1.38505, 1.38245 / 205, 1.3815, 1.38025
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