GBP / USD pair
Last Friday, the UK's economic indicators were worse than expected. The balance of payments amounted to -20.3 billion pounds for the second quarter against expectations of -19.4 billion and -15.7 billion in the first quarter. Business investments for the same period decreased by -0.7% against expectations of an increase of 0.5%. The final estimate of GDP for the 2nd quarter remained unchanged at 0.4%. Meanwhile, the pound lost 48 points in a day.
Today, the UK Manufacturing PMI for September will be released but with a pessimistic forecast of 52.6 against 52.8 in August. This makes the decline in the index the third month in a row.
Technically, the price is systematically decreasing to support the trend line of the downward price channel on a daily scale with an approximate target of 1.2884. The indicator line of trend approached this level but the growth rate on the line slowed down, which is a visual sign indicating its imminent turndown. It is possible that the MACD line will not cross the graphic trend line. Thus, the support will range in 1.2847 / 84. The first target of the decline is the balance line in the area of 1.2932.
On the H4 chart, the price drops below the balance line and the MACD line. The trend line turned down itself, which strengthens the value of the indicator. Also, there was a sign of convergence of the Marlin oscillator with the price but if the quotation overcomes the Friday minimum of 1.2999, then this sign can be leveled.
The material has been provided by InstaForex Company - www.instaforex.com