Forecast for GBP/USD on July 9, 2020

GBP/USD

The British pound took full advantage of the dollar's weakness yesterday and showed an increase of 66 points. As usual, the price was supported by the balance line on the daily chart (red indicator). There are less than 40 points left to reach the first target level of 1.2645. The level is strong, the market could not overcome it on April 14 and 30 (check marks). Success will allow the price to grow to the Fibonacci level of 100.0% at the price of 1.2725.

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The price develops above the balance and MACD indicator lines on the four-hour chart. A divergence is outlined for the Marlin oscillator, but it is not ready yet, so its formation is marked by a dashed line.

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As a result, it is quite possible to reverse the price from the nearest target of 1.2645. But it is impossible to determine how deep this reversal will be – a very powerful growing sentiment formed on the daily chart, breaking it will require a lot of effort from the pound, perhaps the only factor that can do this is if Brexit negotiations failed. While we are waiting for a correction to the Fibonacci level of 123.6% at the price of 1.2540.

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