By the end of Monday, the British pound consolidated below the balance indicator line, having approached the target support level at 1.3369 by 65 points. The signal line of the Marlin oscillator is starting to turn upward, which signals an impending correction.
Today's U.S. inflation data may push the pound toward the target level. The forecast for June CPI is 2.6% y/y, up from 2.4% y/y in May. The dollar may strengthen due to short-term expectations that the Fed's rate-cutting pace will slow.
On the H4 chart, the Marlin oscillator is declining very gradually despite a sharp price drop—this suggests a correction is brewing. The reference point for the correction is the 1.3525 level, the low from July 8. Thus, under the main scenario, after testing the 1.3369 target level, we expect a corrective rise in the pound.
