Yesterday's surge of over 120 pips in the pound was surprising. However, at the same time, a small double divergence with the Marlin oscillator formed on the daily chart, giving bears another opportunity to turn the situation in their favor.
Since this is a "dirty" graphical divergence, it can be broken relatively easily. There remains a possibility that the price could break above 1.2708 and consolidate, which would transform the divergence into a single, cleaner one. Uncertainty may persist until Friday's U.S. employment data is released.
On the four-hour chart, the price has paused at the 1.2708 resistance level. The overall trend, according to the indicator readings, remains upward. However, given the strong growth under unclear circumstances, a market cooldown is likely, which could alter the readings of the technical indicators.
