Forecast for GBP/USD on May 5, 2022

Yesterday, the British pound rose by 134 points against the backdrop of a general weakening of the dollar due to a less aggressive tightening of US monetary policy, as investors began to want (the rate of reduction in the Federal Reserve's balance sheet at the start was $47.5 billion a month against an expectation of $95 billion). ). Today, the Bank of England raises the rate from the current 0.75% to 1.00%, so the nearest bullish target level of 1.2730 can be overcome. In general, the pound is in a strong downward trend, so the price increase, even on the occasion of a rate hike, is considered as a correction. There are no technical signs of a trend reversal, the Marlin Oscillator's growth in the current situation is taken as its discharge before further decline.

The price settled above the balance and MACD indicator lines on the four-hour chart, Marlin in the positive area. The trend is rising, we are waiting for the price to hit the next target level (1.2730).