The British pound gained 59 pips yesterday. It reached the resistance at 1.2410. On the daily chart, the Marlin oscillator is not rising, increasing the probability of its decline from its own range (pink lines) down. Take note that the longer the signal line of the oscillator stays in the range, the more likely there is a triple divergence on the turquoise line.
Today the Bank of England is seen to raise the rate by 0.50% from 3.00% to 3.50%, which will actually be the start of the slowdown of the tightening period. As usual, the distribution of votes on the size of the rate hike will be important.
On the four-hour chart, the price falls under the pressure of the resulting divergence. At the moment, the price is below 1.2410. To ensure the intention to show any significant decline, the price should cross the support of the MACD line (1.2302), then the first target of 1.2155 will become available. Then the price could fall to 1.1933
Relevance up to 04:00 2022-12-16 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
