On the 4-hour chart, GBP/USD is falling along the lower line of the Bollinger Bands and approaching a support level of 1.4038 (Murray [6/8]).
Lack of long-term corrections reflects the strength of the current downward trend.
If the current trend maintains, the next targets of sellers will be the level of 1.3977 (Murray [5/8]).
If GBP/USD cannot consolidate below the levels of 1.4038, the upward correction and retest of the level 1.4099 (Murray [7/8]), 1.4160 (Murray [8/8]) are possible.
There is a high probability of a course reversal from the level of 1.4160.
Technical indicators reflect the maintenance of the downward potential.
Bollinger Bands diverge indicating the preservation of the decreasing tendency.
The volumes of MACD histogram are growing in the negative zone.
Stochastic’s lines are pointed downwards.
Support and resistance
Support levels: 1.4038, 1.3977, 1.3916.
Resistance levels: 1.4099, 1.4160, 1.4221.
Short positions can be opened below the level of 1.4038 with the target at around 1.3977-1.3916 and stop loss 1.4070.