On Wednesday, the British pound displayed increased volatility, with the daily candle's shadows testing the boundaries of the current consolidation range at 1.2186–1.2294. By the end of the day, the pair closed with a modest gain of just 22 pips. However, the Marlin oscillator suggested a potential downward reversal.

If the price closes below 1.2186 during a daily session, it will open the path toward 1.2036. Conversely, if the daily close is above 1.2294, the upward movement is likely to continue toward 1.2367.

On the H4 chart, the price rose above the MACD line yesterday but then sharply reversed at the confluence of the 1.2294 resistance target and the balance line of the indicator.

After settling below the MACD line, this breakout is considered false, indicating a potential decline. For confirmation, the price must consolidate below 1.2186, which would open the path toward 1.2036.