Forecast for GBP/USD on April 7, 2023

Yesterday, the pound tested a strong support level of 1.2422, which turned out to be an insurmountable resistance for the price in the second half of January. Now, if the pair crosses this level, the first target will be the MACD line at 1.2298, and then after a correction, the price may fall to 1.2155.

If the 1.2422 level turns out to be so strong that even a good U.S. jobs data, if this is what today's results turn out to be, can not help the price break through this level, then the pair is likely to reverse to the target level of 1.2598. In this case, the signal line of the Marlin oscillator will break through from its own consolidation upwards.

On the four-hour chart, the 1.2422 level is reinforced by the MACD indicator line. And even though the Marlin oscillator is already in negative territory, it can reluctantly follow the price in case it rises. Today, Europe is taking a break due to a holiday, and the only driver could be the U.S. employment report. Let's wait for the report and see how things unfold.