09.12.201904:37 Forex Analysis & Reviews: Forecast for GBP/USD on December 9, 2019

GBP / USD

The British pound came close to the target level at the Fibonacci level of 200.0% 1.3286. On the daily chart, a reversal pattern begins to appear. Thus, now, a reversal divergence may form with moderate growth or consolidation on the Marlin oscillator.

The second target 1.3352 will open at the Fibonacci level of 223.6% with the price moving above the level of 1.3286, but even in this case, the divergence can be formed with a more gentle forming line only. The first "bearish" target is the Fibonacci level of 161.8%, which was a strong resistance at the peaks of October and November - 1.2968. The main driving force of the market will be the results of the elections in the UK on December 12.

On the four-hour chart, the formation of a reversal divergence is also being prepared according to Marlin. The signal line of the oscillator will slightly increase if the pound rises to the first target 1.3206, after which a price and indicator reversal is likely. Moreover, the fundamental basis for such a reversal will be the "cost-conscious" victory of the conservatives in the parliamentary elections, since they retain an advantage over the Labor Party by 10%. The continuation of growth will also be directly related to the elections - to optimism about the deal with the EU. Another thing is that the deal is already considered "bad", but this issue will be raised by the markets a little later. Thus, we look forward to the results of the elections to the British Parliament on Thursday, December 12.