Paying attention to the 4-hour chart, you will notice that:
- for almost the entire Monday, bullish sentiments dominated in the GBPUSD currency pair, as a result of which our targets (1.3902 and 1.39565) were fulfilled,
- after a short consolidation, the growth of quotations resumed.
Now let’s look at the indicators:
- The exchange rate has significantly moved away from the moving averages with periods of 34, 144, 89 and 55, which are a number of support levels 1.3807, 1.3802, 1.3795 and 1.37825.
- The MACD histogram is still in the positive zone and above its signal line, continues to grow rapidly and thus gives a signal to buy the British pound (GBP).
- The Stochastic Oscillator is in the overbought area and is currently not forming clear signals, since the% K line began to move parallel to the time axis, and also almost crossed the% D line.
Since it is extremely risky to trust only one clear signal, and also due to the fact that the British pound (GBP) is already noticeably overbought, then as confirmation that bullish sentiments may again increase in the forex market in this currency pair, it is necessary to wait for a breakdown strong resistance level 1.4006 (its importance is better seen on the daily chart), which may open the way to levels 1.4060, 1.4111 and 1.4137.
Otherwise, the rate of the GBP / USD currency pair will move within the price range 1.39855 – 1.4006.
An alternative (‘bearish’) scenario will be ‘activated’ in the event of a breakdown of the mirror level 1.39855, after which the quotes may decline to levels 1.3918, 1.3876 and 1.3815.
We remind forex traders that today at 09:00 Moscow time. will be published data on the UK labor market, which may have a significant impact on the further course of trading.
Resistance levels: 1.4006, 1.4060, 1.4111, 1.4137
Current price: 1.4000
Support levels: 1.39855, 1.3963, 1.3918, 1.3902, 1.3876
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