Forecast for GBP/USD on October 19, 2020

GBP/USD

The pound sterling met two strong negative factors at once last Friday: the announcement of the 3rd level quarantine in Lancashire (with the closure of pubs) and Prime Minister Boris Johnson's statement about Great Britain's preparation regarding its relations with the EU along the lines of the EU-Australia, which is practically Brexit without a deal, without access to the EU internal market. The intraday fluctuations of the pound reached 100 points and it seems like it simply did not have time to show a noticeable drop before the stock exchanges closed.

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Today opened with a falling gap, it closed and at the moment the price has stopped before the balance indicator line. Marlin showed slight growth in the positive zone. In general, the situation is neutral, the market is waiting for a push from the outside.

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The price develops below the balance line (red indicator) and the MACD line (blue indicator) on the four-hour chart, while the Marlin oscillator is in the negative zone. When the price falls below Friday's low of 1.2861, this will be a signal to move to the first target at 1.2674. This is the main scenario. It is possible for the correction to continue up to the MACD line at 1.3020.

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