Forecast for GBP/USD on August 20, 2020

GBP/USD

After the British pound gained 135 points on Wednesday and Thursday, this growth was offset by a fall of 140 points. This figure of two extreme candlesticks is called the pattern of rails, a reversal pattern. Also, the Marlin Oscillator formed a divergence with the price.

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The closest target for the pound is the 61.8% Fibonacci level at 1.3026, where the British currency has already found support in the period from August 3 to 13. That is, the level is strong enough, and breaking it will send the price to the second target of 1.2912 (76.4% Fibonacci). The main struggle will unfold on the daily MACD line in the 1.2812 area, which is also the price peak from June 10. Overcoming this level reveals the scenario of a medium-term fall of the British currency.

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The price settled below the Fibonacci level of 50.0% on the four-hour chart and below the MACD indicator line, which clears the way for the price to 1.3026.

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