On Friday, the British pound followed the market after the release of optimistic US data: 1.608 million y/y new homes were pledged in December against expectations of 1.38 million y/y – this is the highest figure since January 2007. On the daily chart, the price sharply returned under the balance indicator line (red). The Marlin oscillator moved down in front of the boundary with the growth zone. The trend has become completely downward. We are waiting for the British pound at the level of the first target 1.2820 (Fibonacci level 138.2%) after consolidation under the Fibonacci level 161.8% (1.2968). Furthermore, it is likely to decrease to the level of 123.6% at the price of 1.2730.
On a four-hour chart, the price has been fixed under the lines of balance and MACD, the Marlin oscillator penetrates into the decline zone. There is also a declining trend for all indicators here.
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Source:: Forecast for GBP/USD on 1/20/2020