The British pound traded in a wide range of 340 points in the range of Fibonacci levels of 238.2% and 200.0% yesterday. The correction goal at the level of 200.0% was thus fulfilled. The signal line of the Marlin oscillator begins to turn down, but not yet deep enough to accept the upcoming reversal as the beginning of a new downward movement. In case of overcoming yesterday’s high (1.1972), it is possible to deepen the correction to the Fibonacci level of 161.8% at the price of 1.2235.
The price is above the MACD line and the balance line on the four-hour chart, which is the main sign of maintaining potential for further growth. The first condition for moving down should be consolidating the price under the Fibonacci level of 223.6% at the price of 1.1750, after which there will be a movement to the level of 238.2% at the price of 1.1638 (yesterday’s low) and only after overcoming it the target opens at the Fibonacci level of 271, 0% at the price of 1.1375.
The material has been provided by InstaForex Company – www.instaforex.com