The British pound gained 80 pips yesterday, but this move does not appear to be well-formed — it was merely another test of the balance line, and today started with a reversal. On the daily chart, the signal line of the Marlin oscillator is turning downward from the midpoint of its descending channel.

This could result in either a move toward the lower boundary of the channel (followed by a reversal back inside) or a breakout below it, which we consider the primary scenario. On the price chart, these scenarios may manifest as either a reversal from the 1.3369 support level or a deeper decline toward 1.3233. Accordingly, we treat the latter scenario (a break below 1.3369) as the main one.

On the four-hour chart, the price is being supported by the MACD line. A consolidation below it would also mean a break below the nearest peak at 1.3474. The signal line of the Marlin oscillator has reversed from the upper boundary of the ascending channel and is now close to exiting the channel. It will then face a battle with the zero line — but this time, the price action itself will support the oscillator. The prevailing trend is downward.