GBP/USD
After touching the Fibonacci level of 200.0% on Thursday, the price did not attempt to once again attack the level on Friday and retreated by another 43 points. This morning, the price lies on the balance line, which makes it more comfortable to settle on the support of the MACD line and the price channel line, at around 1.2188. Consolidation below this mark opens the bearish target of 1.2034 - Fibonacci level of 261.8%. Next to it is the second target level of 1.1986 - the Fibonacci level of 271.0%.
The four-hour chart shows that before the first target of 1.2188, 1.2242 is located ahead of the price - support for the MACD line. Overcoming this indicator line will be the first signal to further pull down the British pound. The intermediate band support 1.2077-1.2107 is also visible here.
The growth of the pound is possible after the price goes above the signal level of 1.2381 formed by the July 17 low.
Today, the UK is expected to yield weak economic indicators; industrial production in July could reach -0.3%, the trade balance for July is projected at -9.6 billion pounds against -7.0 billion in June. We focus on the development of a lowering scenario.
The material has been provided by InstaForex Company - www.instaforex.com