GBP/USD (a 4-hour chart)
The pound lost 120 points last week. We consider that the genuine reason for its decline lies in a sharp demand increase for European bonds which investors are actively buying before their repurchase by the ECB which will begin in March.
The active pound decline against the US dollar was followed from the resistance level of 1.5510. The price decrease was followed by the increased volumes and was suspended by the uptrend line of 1.5400.
The price is finding the first support at 1.5400, the next one is 1.5300. The price is finding the first resistance at 1.5510, the next one is at 1.5620.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a downward movement. The upward movement will be until the price is above the Cloud.
The MACD histogram is in a neutral territory. The price is consolidating.
The upward movement potential target is 1.5510. If the price falls it will get to 1.5300.