Yesterday, the pound sterling formed a small candlestick with a long lower shadow, closing above the 1.2186 level. This reversal pattern shows potential to test the nearest resistance at 1.2294, especially since the Marlin oscillator has turned upward, which supports the price movement.
However, the overall downtrend remains intact, with continued attention on reaching the target of 1.2036, alongside the lower range of 1.1930/50. A signal for this move will be the price consolidating below 1.2186.
On the 4-hour chart, the target resistance at 1.2294 is reinforced by the MACD line. Without strong drivers, it is unlikely that this resistance will be breached. Ultimately, we expect the price to reach the initial target of 1.2036.
