Forecast for GBP/USD on September 14, 2023

GBP/USD

On Wednesday, the British pound managed to move lower and test the support at 1.2444. However, it closed the day above the embedded green price channel line. This morning, the price is gradually rising, awaiting the outcome of the European Central Bank meeting.

If, as expected by most market participants, the interest rate is raised, the pound will have no reason to fall, as it did not drop on negative UK data on Wednesday (July GDP -0.5%, construction output for the same month -0.5%, and industrial production -0.7%).

With a break above 1.2547, the closest target at 1.2617 opens up, and once the price surpasses it, the next target at 1.2684 is in sight. On the 4-hour chart, the price is trying to move above the balance line (red moving average), aided by the Marlin oscillator, which is rising in the positive territory. We await the ECB's decision.