19.03.201908:24 Forex Analysis & Reviews: Forecast for GBP/USD on March 19, 2019

GBP/USD

Yesterday, the speaker of the House of Commons of the British Parliament, John Bercow, forbade Theresa May to re-vote the draft agreement with the EU without changes, on which there was already a vote. Now the decision to postpone the launch of the UK exit from the EU will be made at the EU Summit on the 21st. If such a move or given that there is a slight postponement, the British pound can safely fall. We also strongly doubt that the pound will grow with a significant postponement of the X date, since with the remaining uncertainty, the pound does not receive any political, economic, or even psychological grounds for growth.

The pound's decline on Monday was stopped by the indicator lines of the balance simultaneously on both charts. Today, during the Asian session, the price managed to fixate above the line of MACD on the H4. The Marlin oscillator at the same scale is completely in neutral position - the signal line at the border separating the growth zone from the decline zone.

A double divergence remains in effect on the daily chart. The price may still rise to any Fibonacci level on the four-hour chart (110.0%, 123.6%), but now it is more difficult than it was on Monday.

Consolidating prices below the level of 1.3210 – the level of Fibonacci on the H4 to 76.4% (near the high of 25 of January) – opens the way for further weakness towards the support of the MACD line on the daily scale of 1.3000 and further to support the embedded line of the price channel 1.2904.