GBP/USD
The British pound did not settle below 1.3822 yesterday amid the sluggishness of the rest of the market. Having found the balance indicator line strong enough in the current conditions, the price reversed from it into a small correction.
The price was in the correction range on February 16-17, but now this action takes on a new meaning; since the MACD indicator line (1.3775) is above the consolidation of the third decade of January (marked with a gray area), the price drift under the MACD line may mean a subsequent strong decline, overcoming the January consolidation. The pound is aiming for 1.3630, along with being able to settle below it.
The price is still in a downward trend on the four-hour scale - it develops under the balance and MACD indicator lines. The exit of the Marlin Oscillator into the zone of positive values may indicate that the price will continue to consolidate without disrupting the general structure of growth. Resistance at 1.3950 coincides with the MACD line and the high on February 16. The price may touch it. There are no fundamental conditions for the price breakdown. Today's data on US inflation is expected to be moderately positive, perhaps tomorrow the market will shake up following the European Central Bank meeting. Investors are definitely waiting for the resolution of issues on the growth of government bond yields and the growth of the total debt of the eurozone. If ECB President Christine Lagarde does not present a specific action plan, which, according to market participants, should already be spelled out on paper, the euro, and the pound along with it, will face a strong sale.
The material has been provided by InstaForex Company - www.instaforex.com