GBP/USD (a 4-hour chart)
The UK debt market government bond yields have been growing for the last few days in relation to their US and Germany counterparts which increases the investments’ attractiveness into the British assets. As the United States has a day off on Thursday – amid the low liquidity "bulls" opened long positions, based the corrective movement development.
Sellers have not been able to consolidate below the strong support level of 1.5100. The level reverse testing was followed by its breakthrough upwards. The resistance level of 1.5150 was the potential target for a correction.
The price is finding the first support at 1.5100, the next one is 1.5040. The price is finding the first resistance at 1.5150, the next one is at 1.5200.
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 shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
If the price fixates below the support 1.5100, it may continue the downward trend in the short term. The potential target is 1.5040.