As a result of yesterday, the pound sterling grew by 42 points - the pessimistic speech of the Fed Chairman Jerome Powell in Congress was superimposed on the moderately positive economic data for the UK. UK GDP in May reached an expected 0.3% against -0.4% in April, the trade balance in May improved from -12.8 billion pounds to -11.5 billion, industrial production for the same period increased by 1.4 %, but this indicator is still weak, taking into account the previous drop of 2.9%. In front of Congress, Jerome Powell accentuated the risks to the economy, which increased the expectations of investors of a double rate cut by the end of the year.
On the daily chart, the Marlin oscillator showed a weak convergence, which makes it possible for correctional growth to continue for another 1-2 days, approximately to the May 23 high (1.2604). Overcoming the level will allow the price to rise higher, towards the price channel line (1.2668).
On the four-hour chart, the downward price from the 1.2480-1.2556 range turned out to be false, which makes it possible to expect a high probability over the upper limit, as a result of which the price will automatically be above the MACD line.
from decline, and on the four-hour chart this line will already be in the overbought zone. We expect a reversal from the level of 1.2604 down. The situation may be delayed, then another rise to 1.2668 is likely, where the MACD daily scale line is aimed.
Consolidation above the resistance will push the price to a target level of 1.2604. Here, the Marlin oscillator signal line on the daily will meet with the boundary that separates growth.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.