GBP/USDAmid yesterday's 0.56% rise in the U.S. dollar index, the British pound declined by 0.20% (-51 points). The price moved further away from the 1.3635 level, while the Marlin oscillator on the daily chart entered bearish territory.
This morning, the pound is consolidating below the level—likely in preparation for a move toward the intermediate support at 1.3510. If no correction occurs at that level, the decline may continue toward the target support at 1.3414.
On the H4 chart, the price faces three strong resistances overhead: the 1.3635 level, the MACD line at 1.3658, and the daily MACD line at 1.3692. Overcoming such levels would require solid catalysts, which are currently absent in the media landscape.
The signal line of the Marlin oscillator has approached the boundary of bullish territory. Under the main scenario, we expect a reversal of the oscillator and continued downward movement in price.
The main scenario would be invalidated if the price consolidates above 1.3692. In that case, the pair could retest the July 1 high in an attempt to reach the target level of 1.3834.
