Friday's trading range for the pound was about 80 pips, with the day closing down by eight pips. The lower shadow of the candlestick touched the MACD line.
This is a sign that the repositioning of short-term traders has been completed, and the price is ready to continue rising toward the target level of 1.3525. The balance line (red moving average) is approaching this level, and the price may reach the target at the point where it intersects with the indicator line. In that case, a new correction may occur. The Marlin oscillator is still in negative territory but visually appears to be preparing to enter the growth zone.
On the four-hour chart, the extremes of Friday's session are forming a range for potential consolidation. The nearly horizontal movement of the Marlin oscillator currently signals a sideways trend. Therefore, a breakout above Friday's high at 1.3470 will be a signal for growth.
A downward breakout, as an alternative scenario, appears unlikely at the moment due to the presence of numerous strong support levels on both the H4 and daily timeframes. However, if the price manages to consolidate below 1.3350 (MACD line), a target of 1.3253 will open up.
The material has been provided by InstaForex Company - www.instaforex.com
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GBP/USD
Friday's trading range for the pound was about 80 pips, with the day closing down by eight pips. The lower shadow of the candlestick touched the MACD line.
This is a sign that the repositioning of short-term traders has been completed, and the price is ready to continue rising toward the target level of 1.3525. The balance line (red moving average) is approaching this level, and the price may reach the target at the point where it intersects with the indicator line. In that case, a new correction may occur. The Marlin oscillator is still in negative territory but visually appears to be preparing to enter the growth zone.
On the four-hour chart, the extremes of Friday's session are forming a range for potential consolidation. The nearly horizontal movement of the Marlin oscillator currently signals a sideways trend. Therefore, a breakout above Friday's high at 1.3470 will be a signal for growth.
A downward breakout, as an alternative scenario, appears unlikely at the moment due to the presence of numerous strong support levels on both the H4 and daily timeframes. However, if the price manages to consolidate below 1.3350 (MACD line), a target of 1.3253 will open up.
The material has been provided by InstaForex Company - www.instaforex.com