GBP/USD (a 4-hour chart)
The US Federal Reserve decision to refrain from interest rates raising caused the Treasury bond yields decline. The UK and US government bond yields were expected to fall. The demand for the commodity market also contributes to the dollar quotations decline as the raw material assets cost is denominated in the US currency.
The pound continues the upward movement and completed the first target of 1.5550. The growth to the level of 1.5670 led to the price rebound downwards in the support level of 1.5550 area.
The price is finding the first support at 1.5460, the next one is 1.5390. The price is finding the first resistance at 1.5550, the next one is 1.5670.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is correcting.
We believe the growth will be continued now. The first target is the level 1.3670. the next one is the level of 1.5670.