Paying attention to the 4-hour chart, you will notice that:
- from the European session on Monday, the GBPUSD currency pair is dominated by bullish sentiment, as a result of which our first alternative target – 1.38805 was achieved; also note that at the moment the quotes were close to our second alternative target (1.39225),
- mirrored level 1.3902 now acts as significant support for the British pound (GBP).
Now let’s look at the indicators:
- The exchange rate has consolidated significantly above the moving averages with periods of 144, 89, 34 and 55, which are now a range of support levels 1.3848, 1.3817, 1.3810 and 1.3787.
- The MACD histogram is still in the positive zone and is 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 overbought zone and is giving a similar signal, as the% K line rises above the% D line.
Therefore, we expect that the growth of quotations may resume, and the potential targets of the bulls are located at 1.3960 and 1.3994.
Cancellation of the ‘bullish scenario’ will occur in case of breakdown of the mirror level 1.3902, which may open the way to levels 1.3845 and 1.3812.
Resistance levels: 1.39225, 1.3960, 1.3994
Current price: 1.3907
Support levels: 1.3902, 1.38805, 1.3861, 1.3848 / 45
Market forecasts, analytics and stock news