FX.co ★ dusty24 | GBP/USD

Good day! During yesterday's trading session, bulls in the GBP/USD currency pair managed to update the previous high and pushed the price up to the level of 1.3440, which now serves as the latest local four-hour maximum. As a result, we have received confirmation of the development of an ascending four-hour trend, and the threat of a shift to a descending trend, which we had during the last downward wave, has clearly passed. Currently, the GBP/USD price is trading above the support level of 1.3340, where several important indicator lines intersect, including the TMA indicator's median, the 14-period moving average, and both signal lines of the Ichimoku indicator. Moreover, just slightly below, the lower boundary of the four-hour Ichimoku cloud passes, so all of this together represents significant resistance for the bears to move southward. However, a short-term southern correction is quite likely at the moment, as indicated by the four-hour stochastic, while sellers are supported by the currency's relative strength indicator. Therefore, with a breakthrough of the current position at the round level of 1.3400, we can expect the GBP/USD price to decline to test the support at 1.3340. From there, we anticipate a new upward movement and an update of the current local pair maximum up to the level of 1.3500.