GBP/USD (a 4-hour chart)
At the end of the week the pound jumped more than 200 points. This is the largest movement from the beginning of the year. All the players supported the upward movement, began to invest in the British currency giving the strength to it.
The downward movement is canceled so far.
The buy signal is weak. The pair is above the cloud, the Kijun-Sen and Chinkou Span are below the price and the Ichimoku cloud is horizontal. We do not have any signal now to enter the market which is neutral.
If the price returns under the cloud, under the Kijun-Sen and Chinkou Span, the southern movement resumes.
Bollinger bands lines are broadening and going up.
MACD is in the positive zone and growing, which is also "yes" for an upward movement.
We remind you that the British economy is still in a recession. After reaching the resistance level 1.5180 the pair is likely to bounce down and return to the downward movement.
We have two scenarios:
The pound returns to the level 1.5180, fixes at it and continues growing to 1.5250.
The pair returns to the downward movement. The pound enters the cloud or fall under it.
The first target of the downward movement will be the level 1.4990. Should the pair break through this level and fix below it the pound will go to 1.4940.
Besides technical analysis be advised to consider the fundamental news as well when you make a decision.