A reversal divergence is formed on the weekly chart using the Marlin oscillator. The price of the current candle for a short time went above the level of 2.0425 and returned under it. This level is very strong and has strategic importance. Starting from May 2010, the price reversed from it many times or accelerated after the breakdown.
Now we are seeing a price reversal from the level down. The first goal of the decline will be to support the MACD line at 1.9900, however, this is only the beginning. If a reversal does occur, the MACD line will be overcome. This will become an additional strengthening bearish factor and the price will fall to the target level of 1.8958 – until the top of May 2017. Overcoming the level opens the way to an even lower goal of 1.8274 – the minimum of July 2019.
According to the daily chart of the GBP/NZD pair, the divergence has already been formed.
As seen on the H4, a double divergence is already in effect and the Marlin oscillator – in the fall zone of the trend.The material has been provided by InstaForex Company – www.instaforex.com…
Higher linear regression channel: direction – downward.
Lower linear regression channel: direction – downward.
Moving average (20; smoothed) – down.
On February 25, the GBP/USD currency pair starts with a new round of corrective movement against the downward trend. On Friday last week, the pair’s quotes had the opportunity to gain a foothold above the moving average line, however, it did not take advantage. The new trading week opened with a gap down, which led to the resumption of the downward trend. However, at the same time, bears do not find new reasons for selling the British currency or buying the US dollar. The macroeconomic background this week will be extremely poor, so traders can only count on speeches by top officials of the UK, the European Union, or the United States on topics related to London’s trade negotiations with Washington or Brussels. Only this information can trigger serious exchange rate changes in the pound/dollar pair.
A hearing on the inflation report is scheduled for today in the UK. An event with a “high-profile” name that is unlikely to have any impact on the currency market. Also in the UK today, the CBI report on retail sales – sales volume for February,…
The U.S. dollar retreated after displaying some strength earlier in the session on Monday, amid rising concerns about global growth after the coronavirus spread rapidly outside China. The dollar recovered after easing into the negative territory, but was still finding it tough to move up any significantly above the flat line. The dollar index, dropped to a low of 99.11 from around 99.60, and was last seen at 99.28, up slightly from previous close. Against the Euro, the dollar was down marginally at $1.0856, recovering from $1.0874. Earlier in the day, the dollar was up more than 0.4% at $1.0808. Germany’s business confidence improved in February, reports said citing survey data from the ifo institute. The business climate index rose to 96.1 in February from 96.0 in the previous month. The score was above the forecast of 95.3. The assessment of current situation weakened from last month, while expectations improved in February. The current conditions index came in at 98.9 in February versus consensus of 98.6. At the same time, the expectations index rose to 93.4 compared to economists’ forecast of 92.1. Against British Pound Sterling, the dollar strengthened to $1.2928, gaining more than 0.2%. The Japanese Yen gained…
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