The British pound failed to cross the resistance of the target level of 1.2420 yesterday, and it closed the day by falling 47 pips while the Marlin oscillator is descending on the daily chart. The pullback is on hold for now before the price rushes above 1.2420, since the price is still above the balance indicator line (red). This shows that market participants prefer long positions.
Since the distance between the 1.2155 and 1.2420 target levels is quite large (265 pips), we can expect a sideways price movement in the upper half of this range, until the price is squeezed by 1.2420 and the MACD line on the daily chart (gray rectangle).
On the four-hour chart, the price has settled under the MACD indicator line (blue sliding), the Marlin oscillator is in the red zone. There is a downtrend here, the pound could possibly correct even further before it rises above 1.2420.
Consolidating under 1.2155, below the MACD indicator line on the daily chart, may give us a signal of breaking the uptrend.
