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20.09.201905:27 Forex Analysis & Reviews: Forecast for GBP/USD on September 20, 2019

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GBP/USD

Yesterday, the British pound fulfilled the target formed by the Fibonacci level of 161.8% and the line of the price channel on the daily chart. This is due to the statement by the head of the European Commission Jean Claude Juncker on the likelihood of concluding an agreement on Brexit by October 31, with some changes to the terms of the agreement. However, the news is only duplicate, it was known even earlier, but was lost in the hype of Boris Johnson and the new aggravation in the Middle East.

On the four-hour chart, the Marlin oscillator formed a triple divergence, this is a sign of a price reversal downwards. Yet divergence can be broken down by strong fundamental factors. A technical sign of this will be a price consolidation above yesterday's high, and then the target of 1.2668 as the Fibonacci level of 138.2% will become relevant.

Our main scenario is a price reversal, but to form a signal, the price will have to go down by more than 150 points (which is not surprising due to the pound's extreme growth in the last two weeks), below the signal level of 1.2381, overcoming which opens the target of 1.2230 – Fibonacci level of 223.6% on the daily chart.

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