GBP/USD (a 4-hour chart)
The UK government bond yields are declining relative to their US and Germany counterparts, making investments in British assets less attractive to institutional investors. Secondly, the commodity market sales will support the US currency.
Buyers have updated the previous day maximum of 1.5805, but they failed to continue the bullish trend. The upward trend reversed in the short-term correction. The price broke through the support levels of 1.5775, 1.5550 and decreased to the 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 1.5670.
There is a non-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 downward movement. The downward movement will be until the price is above the Cloud.
The MACD histogram is in a negative territory. The price is decreasing.
We expect the downward movement will be continued now. The potential target is the support level of 1.5390.