GBP/USD (a 4-hour chart)
10-year UK government bonds fell to a three-week low, as the officials of the Bank of England said that investors should not expect an imminent tightening of monetary policy.
Britain has sold 5 billion pounds ($ 8 billion) in inflation-linked bonds maturing in 2068. The pound weakened against most of its 16 major counterparts.
The yield on 10-year bonds fell by 10 basis points, or 0.1 percentage point, to 2.81, retreating slightly after touching 2.80 percent, the lowest level since Aug. 30.
The current buy signal - strong and confirmed, as Chinkou Span is above the price, and the price broke the Ichimoku cloud. The Kijun -Sen and Tenkan -Sen are crossed in a "golden cross" on a daily chart. Both trend lines are growing parallel to each other. The cloud is growing.
Bollinger Bands shows an upward movement, its bands are narrowing. The volatility is being decreased. We can expect a flat or a correction.
The MACD histogram is in a positive area but it is ascending.
If this price continues to fall we believe it can go further and we can expect the formation of a deeper correction down. The potential levels are 1.5900, 1.5820
Should the price break the resistance 1.6060 upward it may continue the bullish trend. In this case, the potential targets will be two resistance levels: 1.6100 and 1.6140.