Strong support level 1.3859 is holding back sellers in GBPUSD for now

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

  • since the beginning of the current day, bearish sentiments dominate in the GBPUSD currency pair,
  • at the same time, the decline in quotations began to slow down as it approached the strong support level of 1.3859.

Now let’s look at the indicators:

  • The currency rate is sandwiched between moving averages with periods of 55 and 34 (resistance levels 1.38825 and 1.3892) on the one hand and averages with periods of 89 and 144 (support levels 1.38295 and 1.38185) on the other.
  • The MACD histogram has practically merged with its signal and zero lines and is not giving clear signals at the moment.
  • Stochastic Oscillator headed towards the oversold zone and is giving a signal to sell the British Pound (GBP), as the% K line falls below the% D line.

Since trusting only one clear signal is extremely risky, and also due to the fact that the decline in quotations began to slow down, then as confirmation that bearish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the strong support level of 1.3859. which can open the way to the levels 1.3837, 1.38025 and 1.3755.

Otherwise, the rate of the GBP / USD currency pair will move within the 1.3859 – 1.3904 price range.

An alternative (‘bullish’) scenario of the development of events will be ‘activated’ in case of a breakdown of the mirror level 1.3904, after which the quotes may go to the levels of 1.3949, 1.3981 and 1.40085.

Resistance levels: 1.38825, 1.3892, 1.3904, 1.3923, 1.39365, 1.3949, 1.3957, 1.3981, 1.40025, 1.40085

Current price: 1.3878

Support levels: 1.3874, 1.3859, 1.3837, 1.38295, 1.38225, 1.38185 / 15, 1.38025, 1.3786, 1.3755

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