FX.co ★ Forecast for GBP/USD pair on May 23, 2024

GBP/USD

Yesterday, the pound reached the target level of 1.2745. Once again, we see the Marlin oscillator in a horizontal position. If this is a consolidation of the oscillator, the price may jump to the upper boundary of the price channel at 1.2786. If the oscillator is fatigued, the price may not exceed 1.2745 a second time, leading to a reversal, as indicated by a small spike seen yesterday.

A break below the MACD line support (1.2640) will confirm the reversal. On the lower four-hour chart, the price slightly broke out of consolidation yesterday, and while the effect of this breakout formally took place, the price might not only return to consolidation but also drop further to the first target at the MACD line at 1.2683.

Breaking the MACD line will open the target at the daily scale MACD line – 1.2640. The Marlin oscillator has settled in the negative zone, indicating this possibility for the price. For the price to continue growing, it must consolidate above 1.2745 on the H4 chart, targeting 1.2786. We await further developments.