Yesterday, the pound became the leader of the decline due to worsening data on employment in England - unemployment increased from 3.7% to 3.8% amid its decline to 3.6%. The price surpassed the target level of 1.2073, taking a breather halfway to the next target of 1.1800. Today, the Federal Reserve is raising rates from 1.00% to 1.50% and there are rumors that the hike could even go as high as 1.75%.

On the daily chart, price convergence with the Marlin Oscillator begins to form, which brings to the fore the standard scenario with a short-term, impulsive price drop to 1.1800 and a subsequent reversal to 1.2073. The reason could be that the markets may have been really expecting a 0.75% rate hike, and the 0.50% rate hike will come. But if there are no false movements, then the price will further decrease to the next target at 1.1660 and convergence will not form.

The four-hour chart does not provide additional clues to the upcoming developments. The Marlin Oscillator either reverses into a short-term upward trend or discharges from the oversold zone before moving further down.