On Friday, the British pound managed to bounce off the support level at 1.2785 and approach the target of 1.2870, showing a net gain of 40 pips. The daily Marlin oscillator is turning downward, but if it has a potential, the price can still reach the 1.2870 target. On the other hand, the range between 1.2785 and 1.2940 represents a strong six-week consolidation period from October-November 2019, which confirmed its strength in October-November 2020. Therefore, a downward reversal could occur within the range, starting from a weaker level within this range.
There are no direct reversal signs, so even if the price consolidates below the level of 1.2785, the price could turn into a new wave of growth towards the target of 1.2940. Consolidation below 1.2678, the peak of May 10, would be a strong reversal sign.
On the four-hour chart, the Marlin oscillator is attempting to decline rapidly. This is perhaps the only sign of an upcoming correction, at least in the short term. The depth of the possible correction cannot be determined (but not below 1.2678, as the MACD line is approaching that level, reinforcing it). Therefore, the best strategy for today and possibly tomorrow would be to observe the price.
The material has been provided by InstaForex Company – www.instaforex.com
GBP/USD:
On Friday, the British pound managed to bounce off the support level at 1.2785 and approach the target of 1.2870, showing a net gain of 40 pips. The daily Marlin oscillator is turning downward, but if it has a potential, the price can still reach the 1.2870 target. On the other hand, the range between 1.2785 and 1.2940 represents a strong six-week consolidation period from October-November 2019, which confirmed its strength in October-November 2020. Therefore, a downward reversal could occur within the range, starting from a weaker level within this range.
There are no direct reversal signs, so even if the price consolidates below the level of 1.2785, the price could turn into a new wave of growth towards the target of 1.2940. Consolidation below 1.2678, the peak of May 10, would be a strong reversal sign.
On the four-hour chart, the Marlin oscillator is attempting to decline rapidly. This is perhaps the only sign of an upcoming correction, at least in the short term. The depth of the possible correction cannot be determined (but not below 1.2678, as the MACD line is approaching that level, reinforcing it). Therefore, the best strategy for today and possibly tomorrow would be to observe the price.
The material has been provided by InstaForex Company – www.instaforex.com
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