Paying attention to the 4-hour chart, you will notice that:
- since the afternoon of Wednesday, bearish sentiments dominate in the GBPUSD currency pair,
- at the same time, the decline in quotations slowed down near the mirror level 1.4104, which now acts as a strong support for the British pound (GBP).
Now let’s look at the indicators:
- The currency has consolidated below the moving averages with periods of 144, 34, 89 and 55, which are now a range of resistance levels 1.4138, 1.41455 and 1.4158.
- The MACD histogram is in the negative zone and below its signal line, continues to decline intensively and thus gives a signal to sell the British pound (GBP).
- Stochastic Oscillator is in the oversold zone and is giving a similar signal, as the% K line falls below the% D line.
Despite two identical and clear signals, as a confirmation that bearish sentiments may again increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the mirror level 1.4104, which can open the way to the levels 1.4077, 1.40485 and 1.4006.
Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.4141, 1.4185 and 1.4233.
We remind Forex traders that at 15:30 Moscow time. will be published data on inflation in the US, which may have a significant impact on the further course of trading.
Resistance levels: 1.4124, 1.4138, 1.4141 / 455, 1.4158 / 59, 1.4185, 1.41985
Current price: 1.4107
Support levels: 1.4104, 1.4089, 1.4077, 1.40485, 1.4006