The British pound fell by 40 points yesterday and returned to the opening of the day. The Marlin signal line only slightly penetrated into the negative trend zone. Nevertheless, this is still an indicator of the market’s intention to move down. The purpose of the movement is the correctional level of 23.6% at 1.2767, which coincides with the low of November 8th.
On a four-hour chart yesterday’s movement appears in more detail. The downward movement was stopped at the Fibonacci level of 61.8% and the balance line. Price development under the line of balance means priority in a downward trend; finding a price above this line means a shift in the market balance towards purchases. Yesterday, the pound’s attempt to change this balance did not work, we are waiting for the second attempt and, probably, more successful, since the signal line of the Marlin oscillator is kept in a downward trend, despite the local price growth.
Intermediate targets when moving to 1.2767: 1.2872 (50.0% Fibonacci), 1.2847 (28.2%), 1.2817 (23.6%).
An alternative scenario with a growth option can be realized upon receipt of the corresponding fundamental data (mainly of a political nature). The goal here is 1.3012 – the peak on October 21, intermediate levels 1.2975 and 1.2995.
The material has been provided by InstaForex Company – www.instaforex.com