GBP/USD (a 4-hour chart)
The pair showed a strong movement in both directions during the holiday week, but closed the week at around 1.6417, with a small loss.
The major this week event is the Bank of England meeting that will be held on Thursday. The main event, which pushes the sterling is the asset purchase program and the basic interest rate. It is not expected that the Bank of England will make some changes in interest rates, according to analysts' expectations asset purchase program will remain at the same level, 375 billion pounds. The UK now has the best combination of strong growth and low inflation.
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 and Tenkan-Sen are horizontal. Tenkan-Sen is crossing Kijun-sen down.
Bollinger bands indicator is turning down.
The current downward movement is confirmed and by MACD histogram.
The pair is in the cloud, the market has not made its mind whether to continue or not a decrease. The price is at 1.6410. If the pair continues falling it will go to 1.6313. If the falling is canceled, GBP/USD will grow towards 65 figures.