Yesterday, the British pound gained 67 pips. The wedge-shaped formation of the Marlin oscillator's signal line, as we expected, has taken the form of an almost horizontal range. If the range persists over time, we expect a correction from the level of 1.2745. If Marlin breaks above the range, the next target will be 1.2837 (the peak of June 22).
The U.S. GDP indicator for the 3rd quarter will be the main event of the day. The forecast for it is 4.9%. Consumer spending for the same period is expected to increase by 4.0%. Such indicators can significantly increase investor risk appetite – they will start buying stock market instruments and risk currencies, i.e., getting rid of the dollar as a safe-haven currency.
On the 4-hour chart, the price is confidently rising above both indicator lines, and the Marlin oscillator is in a stable upward movement. If the price consolidates above 1.2745, we expect the pair to continue rising to 1.2837.
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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.