The British pound lost just over 50 points on Monday, breaking the 123.6% Fibonacci line. On the daily chart, the signal line of the Marlin Oscillator is approaching the convergence line.
Visually, this touch will occur when the price reaches the 138.2% Fibonacci level at 1.3313. From this level, according to the main scenario, we expect a reversal into a deep correction, to the area of the Fibonacci level of 110.0%. The MACD indicator line is gradually approaching it.
On the H4 chart, the price is above the MACD line, but Marlin is in a downward position. It looks like the price is preparing to attack the MACD line. If successful - overcoming this line, the price will reach the Fibonacci level of 138.2% (1.3313), but this departure under the MACD line will hypothetically become false (if the double convergence is fulfilled in the daytime), and the reverse exit of the price above the MACD line, as after any false movement will give it a good upward momentum.The material has been provided by InstaForex Company - www.instaforex.com