GBP/USD (a 4-hour chart)
Last week sterling also strengthened versus the dollar, reaching two-year highs. The pound also failed to keeps gains. There has not been anything interesting from Britain; the attention is paid to the mortgage loans that are still growing, thereby inflating the real estate bubble.
The northern movement is confirmed and strong. The price is fixed above the cloud and below the line Chinkou Span.
The upward movement will be in a force as long the price is above the Kijun -sen. Kijun -sen is horizontal, Tenkan-Sen is directed upwards.
Bollinger bands started to expand again and being directed upwards. The current downward movement is confirmed and by MACD histogram.
During the past week the sterling managed to break through and consolidate above 1.6454 which is a strong resistance level. The pair could not break it for two weeks. Yet the breakthrough happened although there was no fundamental support.
The price falling to the level 1.6454 is likely to lead to a rebound up. Levels 1.6533, 1.6555 and 1.6582 are potential targets.