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Forecast for GBP/USD on January 7, 2020

GBP/USD

The British pound grew by 87 points on Monday, reflecting on the support of the balance line (red indicator) and the MACD line (blue) on the daily chart. The Marlin oscillator also showed a reversal from the boundary with the decline territory. The nearest target at 1.3205 is already close.

analytics5e1411bb0bdc2.png

In the main scenario, we are waiting for a price reversal to a new decline branch - overcoming Monday's low and moving the price to 1.2820. But it will be difficult to make a price, there is strong support around 1.3050: the line of balance and MACD on the daily, the Fibonacci level of 23.6% and the MACD line on H4.

analytics5e1411d095331.png

On the H4 chart, the only sign of the expected reversal is the movement of the signal line of the oscillator along the boundary with the growth territory. But even here, Marlin, as a leading indicator, currently does not show an intention to reverse. It is worth waiting for the situation to develop. Trading in any direction is associated with great risk the next day.

The material has been provided by InstaForex Company - www.instaforex.com