GBP/USD (a 4-hour chart)
The British pound is still strong. Last week the UK traders were pleased with the average earnings and retail sales positive data while the US Federal Reserve disappointed investors with their negative economic forecasts. It is also necessary to note the UK and the US inflation trend. In April the spread was 1% (1.8% in the US and 0.8% in the UK).
The level of 1.5775 breakthrough led to the upward correction formation, aimed at the strong resistance level of 1.5950.
The price is finding the first support at 1.5775, the next one is 1.5670. The price is finding the first resistance at 1.5950, the next one is 1.6080.
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 and the Kijun-sen show an upward movement. The upward movement will be until the price is above the Cloud.
The MACD histogram is in a positive territory. The price is consolidating.
We may expect the fall towards 1.5775 further on we expect a growth to 1.5950 and 1.6080.