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Breakdown of resistance at 1.3914 will strengthen bullish sentiment in GBPUSD

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

  • strong support for the British pound (GBP) formed at 1.3885,
  • since the beginning of the current day, bullish sentiments dominate in the GBPUSD currency pair,
  • at the same time, the growth of quotations began to slow down when approaching the strong resistance level of 1.3914.

Now let’s look at the indicators:

  • The currency has consolidated above the moving averages with periods of 89, 55, 34 and 144, which are now a range of support levels 1.3899, 1.3895, 1.3889 and 1.3851.
  • The MACD histogram is still in the positive area, but has merged with its signal line and is not giving clear signals at the moment.
  • Stochastic Oscillator is in the neutral zone and is giving a buy signal for the British pound (GBP) as the% K line rises above the% D line.

Since trusting only one clear signal is extremely risky, and also due to the fact that the growth of quotations has slowed down, as a confirmation that bullish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the strong resistance level of 1.3914, which may open the way to the levels 1.39385, 1.3964 and 1.40025.

Otherwise, the rate of the GBP / USD currency pair will move within the 1.3885 – 1.3914 price range.

An alternative (‘bearish’) scenario will be ‘activated’ in the event of a breakdown of the strong support level 1.3885, after which the quotes may decline to levels 1.38495, 1.3802 and 1.3755.

We remind forex traders that today at 15:30 Moscow time. will be published data on the US labor market, which may have a significant impact on the further course of trading.

Resistance levels: 1.3914, 1.39385, 1.39525, 1.3964, 1.3976, 1.3981, 1.40025, 1.40085

Current price: 1.3907

Support levels: 1.3899 / 95, 1.3889, 1.3885, 1.3851 / 495, 1.3833, 1.3802, 1.3786, 1.3755, 1.3715

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