On the daily chart, the price is moving within an ascending channel. If optimism continues, the target level of 1.3184 could be broken. The Marlin oscillator is neutral at the zero line, leaving ample room for growth.
British investors remain hopeful that tariffs on UK goods will be lower than those imposed on other countries, a notion that has been circulating since the end of last year.
PMI indicators will be released tomorrow for both the UK and the US. Manufacturing PMI for March is expected to drop from 46.9 to 44.6 in the UK and from 52.7 to 49.8 in the US, suggesting a sharper decline in the US. The first target for the pound is 1.3001; breaking this level opens the path to the second target at 1.3101.
On the H4 chart, the price tested the MACD line (1.2966). A consolidation above it would open the nearest target at 1.3001. The Marlin oscillator shows a bullish bias. A drop below Friday's low at 1.2920 would signal a break below the ascending price channel on the daily chart, targeting 1.2847.
