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29.01.202006:06 Forex Analysis & Reviews: Forecast for GBP/USD on January 29, 2020

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GBP/USD

The pound showed increased volatility on Tuesday - lost 77 points and sharply grew and closed the day with 29 points. The price as a whole worked out the area of the first target at the Fibonacci level of 161.8%, but showed a sign of correction from it. The correction can be deep, to the Fibonacci level of 200.0%, where the blue line of MACD develops. Consolidation at 1.2968 will allow the price to continue to decline to the Fibonacci level of 138.2% (1.2820). Much will depend on today's Fed meeting.

There are no obvious reversal signs on the four-hour chart. But there is a free space both for the price - to the MACD line (1.3080), and for the Marlin indicator to the boundary with the growth territory, which in the current situation roughly corresponds to the level of the MACD line on the price chart.

On the day of the Fed meeting, the range of free wandering (1.2068-1.3080) attracts increased attention of speculators. Consolidating the price above the upper limit of this range will entail further growth in a deeper correction. Consolidating the price under the Fibonacci level of 161.8% on daily (1.2968) opens the target for the next Fibonacci level of 138.2% at the price of 1.2820.

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