The pound sterling has lost 240 points over the past three days in order to hit the first target of 1.2725, Fibonacci 100.0% (Feb 28 low). A slight convergence has formed on the Marlin oscillator on the daily chart.
Now the price has a choice - either it will go into the correction right now, or do so later on from the 1.2645 level. However, if the correction starts from the current levels, then it will most likely take the form of a horizontal consolidation, since the formation is not strong. Furthermore, the price has the following targets for Fibonacci levels: 1.2535, 1.2424.
The price declines with no clear reversal signs on the four-hour chart. This makes it more likely for the price to fall to 1.2645 today.The material has been provided by InstaForex Company - www.instaforex.com