GBP/USD may strengthen
Tatyana Norkina, an analyst at FBS
The pair’s consolidating just above the $1.6800 figure where got as a result of recovery last week. But the resistance at $1.6840 firmly holds the bulls from further action. In the near future it’s possible to expect decline to $1.6770/1.6790.
Ichimoku indicator. The indicator is rather optimistic on H1. Here the Ichimoku Cloud is rising up, reinforcing the underlying trend at this timeframe. However, the Dead Cross formed by Tenkan and Kijun will deter the buyers at $1.6810. Therefore, the decline to $1.6790 would be more than justified that the possible continuation of growth.
At H4 the situation has also changed in favor of the bulls. Here Tenkan and Kijun formed a Golden Cross, the Cloud narrowed showing weakness of bearish sentiment in the market. The pair may recoil up from $1.6770/1.6790 and then retest the recent level of $1.6840.
Technical levels: support - $1.6770, $1.6790; resistance - $1.6810, $1.6840.
1. Buy - $1.6780; SL - $1.6760; TP1 - $1.6810; TP2 - $1.6840.
2. Sell - $1.6840; SL - $1.6860; TP1 - $1.6770; TP2 - $1.6740.