FX.co ★ Forecast for GBP/USD on May 22, 2023

GBP/USD

On Friday, the pound rose by 36 points. There was a bounce off the support of the balance indicator line on the daily chart. The upper shadow pierced the target level of 1.2443, closing near this level. The upper shadow is longer than the body of the candle - 41 points. There's a high probability that the correction has ended.

Now, the price needs to breach the support of the MACD line, or the Friday low of 1.2391, to pave the way to the next target of 1.2273 - the April 3 low. But if the price overcomes the Friday high, then the correction may last to any level, including 1.2583. There are a lot of intermediate levels on the way to the mentioned goal, which were formed in April.

On the 4-hour chart, the balance indicator line stopped growth. The Marlin oscillator looks secured in the area of the uptrend. The price has the opportunity to extend the correction, continuing to struggle with the balance line. The MACD line creates an additional target level for growth - 1.2520.