- GBP/USD is trading just under flat on Thursday as cable holds up better than the rest.
- The chart stopped short of the 76.4% Fib retracement.
GBP/USD 4-hour chart
GBP/USD has held up better than most on Thursday as the greenback fights back. The market has been making higher highs and higher lows but the market retraced just short of the 76.4% Fibonacci retracement level.
If the price does pull back further the 50% Fib retracement looks firm. At the moment the engulfing candlestick pattern is indicating that the market could move lower. The Relative Strength Index has pulled away from the oversold level. The MACD signal lines have had a bearish crossover but they are above the mid-zone indicating the trend might not be over just yet. The histogram is still in the green but only marginally.
If the price does close near the current levels for the daily candle, it would be a shooting star candle which would be another bearish sign. A good bearish indication would be a break of the ascending wedge pattern on the 4-hour chart. So technically the trend is still higher but there are some signs that the price could correct further.
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Additional levels
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