GBP/USD (a 4-hour chart)
The sterling found a strong support and was steady against the dollar after the BoE Chairman speech. In his speech, the Chairman presented the Bank's inflation report. The increased pro-independence popularity in recent polls caused some concerns and frightened traders which were forced to sell the pound. The Scottish independence referendum will be held on 18 September.
Based on the volume which was on the trades closing, the pound clearly intends to continue the correctional price growth up. In addition, it is worth noting the level of 1.6270 testing. The gap was closed.
The price is finding the first support at 1.6180, the next one is at 1.6100. The price is finding the first resistance at 1.6270, the next one is at 1.6340.
There is a confirmed and a weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.
The MACD histogram is in a neutral territory. The price is correcting.
The potential growth target is the resistance level of 1.6340. In this case the gap will be closed. Then the downward trend may be continued.