FX.co ★ British pound can quickly go downward

GBP / USD

Yesterday, the British pound lost 72 points under the pressure of the dollar strengthening, the pessimistic outlook for Brexit and the optimistic expectations of tomorrow's meeting of the Bank of England.

The immediate support for the pound can serve as a trend line of the embedded price channel (1.3096). Next comes the range of 1.3025 / 55 which are the lows of October and November last year. After overcoming this support zone, it is possible to reduce to the next trend line of the channel - 1.2872.

On the 4-hour chart, the price in the Marlin oscillator formed a convergence which may indicate the potential price consolidation, but the signal line of the indicator fits into the wedge, which a sharp exit downwards can be expected.

* The presented market analysis is informative and does not constitute a guide to the transaction.