GBP/USD (a 4-hour chart)
Traders shall receive the construction sector PMI index data. The recent data from a small increase in applications for mortgage loans in Albion can add positive emotions to the release on the index PMI. However, if the rates grow they will be small. The pair needs a technical correction the target is the resistance level 1.5987.
GBPUSD is being traded in a downward channel, going slowly down. It has to break the lower boundary of the channel at the mark 1.6000 and a strong support level at the mark 1.5990 to change its direction to the South. In this case 1.5925 will become a potential target.
There is a strong and confirmed sell signal, the price is below Chinkou span, and the Ichimoku cloud is below the price. Tenkan-Sen and Kijun-sen are directed down. The Cloud is falling.
The downward movement is kept as long as the Kijun-sen is located at the level 1.5946, being above the price.
Bollinger Bands confirms the present falling, its bands are narrowing and are directed downwards.
The MACD histogram is in a negative area, its volumes are reducing.
The price reached 1.5902 it is currently consolidating at 1.5932/42.
We still are waiting for attempts to break through the barrier 1.5902/1.5892. If a breakdown takes place it may be a price reversal signal in the medium-term downtrend. The levels 1.5822, 1.5712/22 will be the targets in this case.