17.05.201906:37 Forex Analysis & Reviews: Forecast for GBP/USD on May 17, 2019

GBP/USD

So, after a ten-day hike, the pound reached its target of 1.2772-1.2814, as yesterday it stopped on the price channel line of the daily chart. Now we are faced with the question - will the market move to correctional growth or will it continue to decline towards the next target at 1.2660? The indications of the leading marlin oscillator on the daily chart do not provide an answer to this question. A convergence could be formed, but not yet. On the four-hour chart, the oscillator also has not formed reversal formations, the signal line has been developing in the horizontal direction since May 9th. This means that the market trend is in a neutral position and the movement can be in any direction with the same probability despite the strong decline in the pound.

On the other hand, if the price is consolidated below the price channel support line (below 1.2772), the marlin oscillator on the daily chart will continue to decline without a hint of convergence. On H4, the marlin will also move in a downward direction.

The market itself must show its intention. If the price consolidates above 1.2814, we wait for the completion of the correction at any of the indicated levels determined by the historical pivot points: 1.2852, 1.2887, 1.2925, 1.2960, 1.2987. In case of consolidation below 1.2772, a further decline to the 1.2660 target is likely.