On Monday, the pound grew 25 points vs. the strength of the US dollar. However, the sustainable development of the pound may be until the first ‘signal’ of the common market trend to strengthen the US dollar.
On the daily chart yesterday the price has reached the level of Fibonacci 138.2% reaction. From the technical point of view divergence on Marlin oscillator on the H4 tells about future reverse. However, in order the signal strengthens, the indicator line has to move the negative territory; it may happen if the price crosses 1.5606. In this case the first target is the high of August 8, 1.5572, the second target is 1.5545, and the third is 1.5495, considerable support of May 1-6, June 7-10, and August 15. From the fundamental point of view it looks like the pound is stronger than the euro and we expect the decline at least until 1.5495 with the rebound from local levels.