GBP/USD (a 4-hour chart)
Since early July, the British currency gained more than 500 points, but it's hard to move in the same direction without stopping and now there is reason for the correction. Market participants should start to exercise caution in relation to the pound in anticipation of two events.
• Meeting of the Central Bank of the UK, which should take place on 1 August.
• The report of the Central Bank of England on inflation, which will publish on August 7.
The upward movement continues. The price broke 1.5300 last week and keeps growing to 1.5440 now. Should the pair overcome this target the upward movement may continue growing to the second resistance level 1.5600.
The upward movement is maintained as long as the price is above the Kijun-Sen. The Kijun-Sen and Tenkan-Sen are directed upwards. The price is above Kijun-Sen and Tenkan-Sen. The Cloud is growing.
Bollinger Bands indicator shows an upward movement, the bands are directed up.
MACD is in a positive area.
As the pair is consistently traded above the 1.5300-1.5330 support its short-term term prospects look positive, and the recovery is expected to be continued to the resistance 1.5750.
However, in the case of reverse break and consolidate below 1.5300 again will intensify downside risks to the minimum testing 1.4810.
Meanwhile, a break above 1.5750 so far does not look too prospective, and we expect a reversal down on the approach to this mark.