GBP/USD (a 4-hour chart)
The UK low inflation expectations put pressure on the "cable". In this regard, we observe the UK and the US negative differential bond yields extension that acts as the bulls’ deterrent.
The pound corrective strength reached the week maximum - the resistance level of 1.5735 and fell to the level of 1.5660. The level of 1.5735 is below the resistance level of 1.5870 that is a key resistance on the buyers’ way.
The price is finding the first support at 1.5660, the next one is at 1.5550. The price is finding the first resistance at 1.5870, the next one is at 1.5950.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.
The MACD histogram is in a neutral territory. The price is consolidating.
The potential decrease target is the support level of 1.5550.