Yesterday, the British pound rose by 49 points while the dollar slightly weakened throughout the market. The target level of 1.2422 was pierced by the upper shadow of the daily candle. Today, it opened exactly at this level. The signal line of the Marlin oscillator is directed downwards - the bearish scenario has the advantage.
The main driver of the pound's movement could be today's UK inflation report. Overall, indicators might show a slowdown, which would naturally put pressure on the British currency's exchange rate. The first target of the movement is 1.2322 – the MACD line.
On the four-hour chart, the price is consolidating at the 1.2422 level below the balance and MACD indicator lines, and the Marlin oscillator's signal line is moving horizontally along the zero line. The likelihood of the oscillator and the price declining is higher.
We can break the main bearish scenario once the price settles above the MACD line, above the 1.2464 mark. However, at this stage, growth will be limited to the highs on April 4th (1.2524) and April 14th (1.2545).
