Forecast for GBP/USD on April 23, 2020

GBP/USD

The pound sterling has been trading in a range bounded by a Fibonacci level of 161.8% at the bottom and a Fibonacci level of 138.2% at the top, where the MACD line is approaching on the daily chart.

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In the main scenario, we expect the price to go below the lower level of 1.2235 and the pound to move to the price of 1.1935 at the Fibonacci level of 200.0%. Then it is possible to continue the downward branch to the Fibonacci level of 223.6% at the price of 1.1750. In this scenario, the price could rise to 1.2422, where it will meet strong resistance from the matching Fibonacci and MACD lines.

The alternative scenario will take effect if the price is consolidated above 1.2422, then the growth can continue to 1.2725 – up to the Fibonacci level of 100.0%. But the growth could be less, up to any of the Fibonacci levels located in front of the price. This creates its own risk of uncertainty in growth.

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The trend continues to decline on the four-hour chart despite the growing Marlin indicator, since it has not formed reversal patterns and, in this case, is simply moving behind the price.

We are waiting for the price to overcome the Fibonacci level of 161.8% at the price of 1.2235, after which it is possible to open sales with the target of 1.1935.

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