Forecast for GBP/USD on January 25, 2021

GBP/USD

Last Friday, the pound fell by 93 points at the moment, slightly piercing the signal target level of 1.3646 and rebounded off it. The signal line of the Marlin oscillator has returned to its own wedge. This is a good sign of an impending breakout of the wedge to the downside, but the oscillator line is very close to the top of the wedge, which can later turn into a regular rectangular (gray rectangle), and this will allow the price to form a new high, above the 21st's peak. Getting the price to settle below 1.3646 will direct the price to the 1.3480 level according to the main scenario. The MACD line also strives for it.

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The four-hour chart shows that if the price rises, a double divergence is formed. This is an alternative scenario, but its probability is high, as the price reversed from the support of the MACD and Marlin line in a growing position. Ultimately, either with double divergence or without it, we are waiting for the price to move under the signal target level of 1.3646 and wait for the price in the area of the target level of 1.3480.

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

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