Paying attention to the 4-hour chart, you will notice that:
- fragile support for the British pound (GBP) formed at 1.37785,
- Since about the middle of the American session on Tuesday, bullish sentiment has been dominating in the GBPUSD currency pair.
Now let’s look at the indicators:
- The currency rate is located below the moving averages with periods of 34, 55, 89 and 144, which are a series of resistance levels 1.3816, 1.3845, 1.3874 and 1.39715.
- Last night, the MACD histogram crossed the zero line from top to bottom, is now in the negative 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 near the oversold zone and is forming an opposite signal, although it is not clear yet, since the% K line has just crossed the% D line upward, but has not yet begun to rise above it.
Due to the contradiction in the signals provided by the indicators, as well as due to the fact that the growth of quotations is still ‘uncertain’ in nature, then as confirmation that bullish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown resistance level 1.3808, which may open the way to levels 1.3880 and 1.39245.
Otherwise, the rate of the GBP / USD currency pair will move within the 1.37785 – 1.3808 price range.
An alternative (‘bearish’) scenario will be ‘activated’ in the event of a breakdown of the support level 1.37785, after which the quotes may decline to levels 1.3754, 1.3731 and 1.36895.
We remind forex traders that today at 21:00 Moscow time. the publication of the minutes of the FRS meeting will take place, which may have a significant impact on the further course of trading.
Resistance levels: 1.3808, 1.3816, 1.3834, 1.3845, 1.3860, 1.3874, 1.3880
Current price: 1.3805
Support levels: 1.37785, 1.3754, 1.3731, 1.36895, 1.36695
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