The British pound has corrected by 38.2% of the entire movement since August 26 of last year, reaching the target level of 1.2616. The daily Marlin oscillator is declining. The current situation resembles a shift in the medium-term trend.
However, we need confirmation through a break below the nearest support level at 1.2500. If the price manages to close the day above 1.2616 (or ideally above yesterday's high), further growth toward 1.2708 is likely. We are leaning towards a price reversal since today's UK employment report is expected to reveal an increase in the unemployment rate from 4.4% to 4.5%.
On the four-hour chart, a slight divergence is evident. The price is approaching support at 1.2500, which is reinforced by the MACD line. If this support holds, the current decline may only be a correction before a subsequent rise toward 1.2708 or even higher.
