GBP/USD (a 4-hour chart)
The sterling spent the last session in a narrow side corridor versus the “green”, but it was closed with small losses unlike the Euro. The news absence left the pound under the influence of external factors during two sessions in a row.
The pair went below the 50-day SMA that makes possible the testing stronger support, which is in the range 1.6200–1.6220, from which reversal of the trend upward is possible. The growth target remains a break above minor resistance 1.6620 and testing the key resistance 1.6750.
Meanwhile, in case of breakthrough and fixation below 1.6220 perspectives of the pair will weaken and the way testing key support in the area of the 1.5820–1.5850 will be opened; where reversal of the trend upward is also expected.
The northern movement is canceled after the pair broke the cloud downwards. The price is below the cloud and above the Chinkou Span.
The downward movement will be in a force as long the price is below the Kijun -sen. Kijun-sen and Tenkan-Sen are directed down. Tenkan-Sen is crossing Kijun-sen downwards.
Bollinger bands indicator is broadening and directed downwards.
The MACD histogram is in a negative zone, showing a decrease.
The pound is traded at 1.6410. Each retest level is accompanied with a small bounce up and with a return of price rates back to the level. There is a consolidation in the area 1.6360–1.6320.
When the prcie breaks 1.6313, the way to a strong daily support level 1.6220 will be opened.
If the pair grows it will go to 1.6500.