GBP/USD (a 4-hour chart)
The IFO institute weak release may put pressure on the pair EUR/GBP which will give some support to the British pound. The US April inflation data is based on the leading indicators and did not disappoint GBP/USD bears.
On the other hand, we have observed the UK short-term and long-term bond yields increase on the debt market which is a negative factor for the national currency.
There was a rebound from the upward trend line of 1.5460 after the two-days consolidation. The price rebound was on the highest volume, but the pair grew to the resistance level of 1.5670. then the pair rebounded downwards and tested the support level of 1.5460.
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 at 1.5670.
The price is in 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 “Golden Cross”.
The MACD histogram is in a neutral territory. The price is decreasing.
We believe the decrease will be continued now. The first target is the level 1.5390, the next one is 1.5300.