19.02.202006:55 Forex Analysis & Reviews: Forecast for GBP/USD on February 19, 2020

GBP/USD

The British pound traded in the range of around 80 points on Tuesday, the upper limit of which was the Fibonacci level of 76.4% on the daily chart. Price development took place under the line of balance (red indicator), which indicates the predominance of sellers, but the signal line of the Marlin oscillator lies on the boundary dividing the potential growth and decline zones. The main scenario for further development is still the pound's fall to the Fibonacci level of 110.0% at the price of 1.2845.

The lower boundary of yesterday's range was the MACD line on the H4 chart. Overcoming this support, below 1.2967, will include the main scenario in action. The departure of the Marlin signal line to the negative zone enhances the likelihood of this scenario.

But the price of four sessions can not overcome the support of the MACD line. Delaying this important step can lead to even greater activity from the bulls, who felt the weakness of the bears. Data on construction in the US for January will be released today, the forecast for new housing starts is 1.40 million compared to 1.61 million in December, and this may serve as an incentive for another attack on the Fibonacci level of 76.4%. We are waiting for the development of events.