BRITISH POUND TRADES THE MULTI-MONTH MAX AREA

Posted 12 January, 2022

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

 

Since the American session on Tuesday, bullish sentiments dominate in the GBP / USD currency pair.

Mirrored level 1.3633 now acts as notable support for the British pound (GBP).

 

Now let's look at the indicators:

 

The rate of the currency pair remains significantly above the moving averages with periods of 34, 55, 89, and 144, which are directed upward and indicate continued bullish sentiment (in the medium term), as well as a number of support levels 1.35685, 1.3542, 1.3495 and 1.34005.

 

British Pound (GBP) is trading through the multi-month max area ...

 

The MACD histogram is still in the positive zone and is already noticeably 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 is moving almost parallel to the time axis, and also almost crossed with the% D line.

Despite only one clear signal, we expect that the growth of quotations may continue, and potential targets of the bulls are located at 1.3684, 1.3740, and 1.3781.

Cancellation of the 'bullish scenario' will occur in case of a breakdown of the mirror level 1.3633, which may open the way to levels 1.3597, 1.35525, and 1.3511.

We remind forex traders that today at 16:30 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: 1.3645, 1.36625, 1.3684, 1.3740, 1.3781

Current price: 1.3642

Support levels: 1.3633, 1.3616, 1.3597, 1.3572, 1.35685, 1.35525, 1.3542, 1.3538, 1.3527, 1.3511

Previous forecast

13 January, 2022 08:19

← THE EUR/USD CURRENCY PAIR IS CONSOLIDATING AFTER A SURGE OF BULLISH SENTIMENT

Paying attention to the 4-hour chart, you can see that: on Wednesday, the breakdown of the local max 1.13855 led to a noticeable increase in bullish sentiment, and our first target (1.1442) was reached during the American session. The growth of quotes slowed down only at around 1.1452, after which consolidation began.

THE EUR/USD CURRENCY PAIR IS CONSOLIDATING AFTER A SURGE OF BULLISH SENTIMENT

Next forecast

11 January, 2022 09:53

USD/JPY FORECAST: THE PAIR HAS COME OUT OF THE OVERBOUGHT AREA →

USD / JPY four-hour chart. The currency pair has left the overbought area, which is a strong reversal signal. Locally, the price is held by the daily supertrend line. From this level, we can expect the development of a moderate upward movement in the direction of the level (8/8).

 

 

USD/JPY FORECAST: THE PAIR HAS COME OUT OF THE OVERBOUGHT AREA
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