On Wednesday, the British pound continued to decline, but its speed decreased as it approaches the technical support – to the red balance line on the daily chart and the slowdown in the decline of the signal line of the Marlin oscillator on the boundary with the territory of the “bears”. However, the oscillator has already negative values. Therefore, the first target 1.2965 can be reached soon. The support is strong in October and November, and it was the resistance to consolidation. Due to this, an upward correction is likely from it.
The subsequent breaking through of this support in the main scenario opens the target 1.2730 – the Fibonacci reaction level is 123.6%. Next, we expect the price at the Fibonacci level of 100.0% (maximum of September 20) at the price of 1.2582.
On a smaller (four-hour) chart, the price is developing under both indicator lines – the balance line (red) and the MACD line (blue). Meanwhile, the Marlin indicator is in a downward position.
Origin: InstaForex
