Forecast for GBP/USD on October 2,2019

GBP/USD

The pound was trading over 130 points on tuesday, due to mixed news about a possible tight border with Ireland and a weakening dollar on the weak ISM Manufacturing PMI, which fell from 49.1 to 47.8 in September. Manufacturing PMI in the UK increased from 47.4 to 48.3. The British pound is currently at the opening level of the week and, accordingly, the technical parameters remain the same; the immediate goal again is the Fibonacci level of 223.6% at the price of 1.2230, behind which the second target is located near the Fibonacci level of 1.2144 (238.2%), which coincides with the enclosed line of the price channel. From the second goal, a deeper correction is possible. The Marlin oscillator on the daily scale did not react to yesterday's price dynamics.

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On the four-hour chart, growth stopped at the resistance of the balance line. The Marlin signal line is still above zero, moving along the boundary - in a neutral position. The general trend is decreasing.

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The declining trend will be broken after the price goes above the MACD line in the region of 1.2390, this level is close to the low on July 17, which gives additional weight to its significance. In this case, growth may continue to the price channel line on the daily chart to the area of 1.2496.

In the main scenario, we are waiting for price consolidation at 1.2230 with a further decrease to 1.2144.

The material has been provided by InstaForex Company - www.instaforex.com