The British pound continues strengthening against the US dollar, but it is approaching short-term important resistance levels and bulls need to be very cautious.

On the 4-hour chart shown above, the price is trading below the Ichimoku cloud, but above the kijun-sen and tenkan-sen indicators. Resistance is at 1.5150, while support at 1.5050. There are signs that the bullish short-term momentum is weakening, but if bulls manage to hold above 1.5050, they could make another try towards the 1.5150 resistance.

Blue lines - wedge formation

GBP/USD is sliding downwards inside a wedge pattern. The weekly chart shows that the price is below the Ichimoku cloud and below the tenkan-sen and kijun-sen indicators. Resistance is important at 1.5150-1.5250 while support is found at 1.4950. The stochastic oscillator is also providing a bullish divergence as it did not make a lower low as the price did. This is a reversal signal that GBP/USD bears should consider their actions carefully.