The British pound lost around 60 points on Friday in excitement, due to a new negotiating week regarding the Brexit issue. So far, there have been no positive developments in this process, and from a technical point of view, the situation is becoming more bearish. The Marlin oscillator turns to the downside on the daily chart. The price failed to break through the area above the Fibonacci level of 61.8%, but now it is heading towards the nearest level of 100.0%, which is the first target of the bears and also the February 28 low (1.2725). Once the first target is overcome, the second target opens at the Fibonacci level of 110.0% at the price of 1.2645.
The price has not yet settled in the area above or below the MACD line on the four-hour chart. The signal line of the Marlin oscillator is directed to the downside, but also "contends" with the neutral line of the oscillator. If the price settles below Friday's closing level of 1.2912, the downward scenario will begin to unwind. This is our main plan.
The alternative involves resolving and reaching the Fibonacci level of 61.8% at the price of 1.3026 and possible succeeding growth to the Fibonacci level of 50.0% at the price of 1.3120.The material has been provided by InstaForex Company - www.instaforex.com