GBP/USD (a 4-hour chart)
GBP/USD jumped up by 100 points from the lows of the day yesterday after Carney comments: " the rate change will not be delayed if job growth will be sustainable." GBP strengthened after Carney's speech when the Canadian head of the Bank of England said that "the benchmark does not prevent the central bank to add some stimulus ." Immediately before the Carney's speech the cable was under a severe pressure. Carney's comments allowed it to jump over the area 1.5500.
The downward movement has extended from 1.5717 to 1.5429. Deeper decline is still possible. As long as the channel support holds, the fall from 1.5717 can be considered as consolidation of uptrend from 1.4813 and another rise towards 1.6000 is still possible after consolidation.
The pair keeps working out a "golden cross. The current buy signal is strong and confirmed, as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud.
If the growth continues, the pair will continue growing to 1.57. First the pair needs to consolidate at 1.56, reached the other day. The cloud is directed upwards. Tenkan-sen is slightly increased and the Kijun-sen is horizontal.
Bollinger Bands indicator shows a downward movement, the bands are directed down.
The MACD histogram is located in a negative zone near to the zero level.
It is still possible that the price will try to test the ascending line of a trend 1.5440. If it manages to break it, a descending correction will be developed into a bear trend. The strong level of support 1.5400 will act as the closest target of falling. Its breakdown down will open the way to 1.5320.