The British pound fell by 145 points yesterday, while it is losing another 45 points today in the Asian session, approaching the Fibonacci level of 123.6% (1.2540). Overcoming this level will extend the decline to the Fibonacci level of 138.2% at the price of 1.2424. The signal line of the Marlin oscillator is very close to the border with the territory of the downward trend. This proximity, when the price is close to the key level (123.6% Fibonacci), strengthens this level (1.2540), a correction or consolidation is possible from it.
The situation is completely going down on the H4 chart – the price is below the indicator lines and Marlin is steadily declining. Price taking at 1.2540 may extend the pound’s fall to 1.2424, the correction is limited by the MACD line and the Fibonacci level of 110.0% at the price of 1.2645.
The material has been provided by InstaForex Company – www.instaforex.com