Previous Story
Forecast for GBP/USD on Jan 23, 2020
GBP/USD
On Wednesday, the House of Lords of the British Parliament passed the Brexit bill. The UK, as planned, will officially leave the EU on January 31. Then England and the EU countries will have 11 months to prepare trade agreements. The pound once again rose on the news of Brexit, adding 92 points yesterday. We once again believe that the growth of the pound is speculative since the divorce agreement does not give any advantages to the UK with the state that it had before leaving the EU.
As seen on the four-hour chart, the price yesterday overcame the signal level of 1.3083, choosing an upward direction, as we assumed in yesterday’s review, and reached the target of the corrective level of 38.2%. From the current level, the price may turn down, however, the Marlin oscillator, as a leading indicator, is in no hurry to turn around, so another growth impulse is possible to the area of the corrective level of 50.0% (1.3200).
On the daily chart, there is a Fibonacci level of 200.0% near the price of 1.3200, which the MACD line is aiming for. The resistance is strong and it is likely to cause the price to turn down.
The material has been provided by InstaForex Company – www.instaforex.com
