Yesterday, the pound traded within a 50-point range, closing the day at the opening level. But at the same time, the daily candle settled below the price channel line and the Marlin oscillator shifted to the downtrend territory, increasing the chances of a bearish breakout. If the price breaches the support level at 1.2070, the target would be 1.1880, where the price channel line intersects with the MACD line on the weekly chart.
The pound can recover if it breaks above yesterday’s high at 1.2190, as this would also lead to the price climbing above the embedded price channel line. The nearest target would be 1.2307.
On the four-hour chart, the price is trading below the balance and MACD lines, indicating a downtrend. Even the Marlin oscillator has returned below the zero line (indicated by the arrow). However, a price convergence has formed, which is still in effect and provides a chance to turn this into an uptrend.
On the same time frame, the MACD line is slightly above yesterday’s high, so the first signal for an upward move would be a breakout above this level.
The material has been provided by InstaForex Company – www.instaforex.com
GBP/USD
Yesterday, the pound traded within a 50-point range, closing the day at the opening level. But at the same time, the daily candle settled below the price channel line and the Marlin oscillator shifted to the downtrend territory, increasing the chances of a bearish breakout. If the price breaches the support level at 1.2070, the target would be 1.1880, where the price channel line intersects with the MACD line on the weekly chart.
The pound can recover if it breaks above yesterday’s high at 1.2190, as this would also lead to the price climbing above the embedded price channel line. The nearest target would be 1.2307.
On the four-hour chart, the price is trading below the balance and MACD lines, indicating a downtrend. Even the Marlin oscillator has returned below the zero line (indicated by the arrow). However, a price convergence has formed, which is still in effect and provides a chance to turn this into an uptrend.
On the same time frame, the MACD line is slightly above yesterday’s high, so the first signal for an upward move would be a breakout above this level.
The material has been provided by InstaForex Company – www.instaforex.com
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