FX.co ★ Forecast for GBP/USD on May 20, 2022

The British pound decided to once again return to the narrow target range of 1.2436/76. There was even a brief exit from it with the upper shadow of the daily candle. The signal line of the Marlin Oscillator has reached the border with the upward trend area, now it shows an early sign of a downward reversal from the border. We are waiting for the price to return under 1.2436 and another attempt to reach the target support at 1.2250.

Settling above 1.2476 will prolong the corrective growth to the level of 1.2637.

There is a price divergence with an oscillator on the four-hour chart.We can only wait for the price to settle under 1.2436 in order to get a high-quality reversal signal. Or the price will choose an alternative scenario and consolidate above the upper level of the range with further upward movement.