12.12.201905:45 Forex Analysis & Reviews: Forecast for GBP/USD on December 12, 2019

GBP/USD

The British pound reached the target level of 1.3206 at the Fibonacci level of 200.0% for the second time yesterday, while also managing to overcome it this morning. The target opens at the Fibonacci level of 223.6% at the price of 1.3352. Continued growth does not negate the likelihood that a divergence could be formed later, across Marlin with a corresponding market turn down.

General elections for the UK Parliament are held today. The problem of the whole campaign is the likelihood of getting a "hung" Parliament if Conservatives do not gain the predicted 340 seats. In this case, the story will drag on with the formation of coalitions and other difficulties in solving the main task - in forming a deal with the EU.

The situation is completely upward on the four-hour chart: the price above the balance and MACD lines, the Marlin oscillator in the zone of positive numbers.

So, we look forward to the British pound's continued growth to the first target of 1.3352. Overcoming this goal opens the second target of 1.3440 at the Fibonacci level of 238.2%. The first sign of a pound reversal will be a price fall below the MACD line at H4 (1.3140), after which we expect the price to return to the October-November support of 1.2968, which coincides with the Fibonacci level of 161.8%.