GBP/USD (a 4-hour chart)
The British currency is in a flat of 1.5537 -1.5674 and in the short term we expect this range breakthrough. Fundamental factors indicate that we will see the downward trend development. Last week we received the UK and the US inflation data and its dynamics indicates the presence of demand for the US dollar besides it slightly weakened.
Buyers have not been able to break through below the support level of 1.5550 for a long time. All attempts were followed by the consolidation formation with the further rebound.
The price is finding the first support at 1.5550, the next one is 1.5460. The price is finding the first resistance at 1.5670, the next one is 1.5775.
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 a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.
The MACD histogram is in a neutral territory. The price is consolidating.
The approach to the level of 1.5550 may lead to a price rebound down. The potential rebound targets are the support levels of 1.5460, 1.5390.