The British pound reached the upper limit of the price channel yesterday, lasting since July 2014 (1.3147), today the price has exceeded this boundary and the price channel has lost its value. But the next goal – the Fibonacci level of 200.0% at the price of 1.3206, remains, and overcoming the level opens the second target at 223.6% at the price of 1.3352.
The indicators on the four-hour chart warn that the second target may be unattainable – the signal line of the Marlin oscillator went down from its own channel. Further price growth to the first target of 1.3206 will form a divergence on the oscillator and this will already be a full-fledged reversal pattern.
So, in the main scenario, we are expecting growth to 1.3206 and a pound reversal down to the nearest target of 1.2970 – Fibonacci level of 161.8% (daily).
The material has been provided by InstaForex Company – www.instaforex.com