GBP/USD
On Tuesday, the index of business activity in the UK construction sector in August showed a decrease from 45.3 to 45.0, the British pound continued to decline, puncturing the support of the embedded price channel line and the Fibonacci level of 271.0% on the daily chart. But in the evening there was news about the transition from the Conservative Party of Parliament MP Philip Lee (former Minister of Justice) to the Liberal Democrats, which deprived the ruling party of the majority in the House of Commons. Theoretically, the opposition had a chance to declare a vote of no confidence in the government before sending the Parliament forcibly to long vacations. The pound soared by 125 points, closing the day rising 17 points.
Currently, on the daily chart, the signal line of the Marlin Oscillator has reached the zone of positive values, the growth zone of the trend. Most likely, the growth will continue to the point of coincidence of the price channel line with the MACD line, to 1.2202.
On the four-hour chart, Marlin is also in the growth zone, the level of 1.2202 coincides with the MACD line. We are waiting for the price at this target level, after which it is possible to turn the price down (this is the main scenario). Or, until we receive a no less important political news, further growth.
The material has been provided by InstaForex Company - www.instaforex.com