Paying attention to the 4-hour chart, you will notice that:
- in the morning of Monday, a surge in bullish sentiment occurred in the GBPUSD currency pair, as a result of which our first two alternative targets (1.37085 and 1.3748) were worked out,
- at the level of 1.37665, there was a strong resistance for the British pound (GBP),
- the mirror level 1.3742 now acts as a strong resistance,
- since the beginning of the current day, the strengths of bulls and bears are approximately equal.
Now let’s look at the indicators:
- The currency rate remains noticeably below the moving averages with periods of 89, 34, 55 and 144, which are the range of resistance levels 1.3773 / 74, 1.3788 and 1.38225.
- The MACD histogram is still in the negative zone, but already above its signal line, continues to rise smoothly and thus gives a signal to buy the British pound (GBP).
- Stochastic Oscillator is in the neutral zone and is giving an opposite signal, as the% K line falls below the% D line.
Despite the contradiction in the signals provided by the indicators, we expect that the pressure on the British pound (GBP) may increase, and potential bearish targets are located at 1.36695, 1.36425 and 1.3609.
Cancellation of the ‘bearish scenario’ will occur in case of a breakdown of the mirror level 1.3742, which may open the way to levels 1.37665, 1.37935 and 1.3833.
Let us remind Forex traders that today they should pay attention to a number of significant events, which can have a noticeable impact on the further course of trading:
at 09:00 Moscow time. a number of fundamental UK data will be released,
at 15:30 Moscow time. US inflation data will become known.
Resistance levels: 1.3742, 1.37665, 1.3773 / 74, 1.3788, 1.37935, 1.3819, 1.38225, 1.3833
Current price: 1.3731
Support levels: 1.3729, 1.37085, 1.3681, 1.36695, 1.36425, 1.3609, 1.35715, 1.3550
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