Forecast for GBP/USD on October 23, 2023

GBP/USD

Last Friday, the British pound tried to break through the resistance of the embedded price channel line, but failed. The Marlin oscillator continues to move sideways along the zero line. If today's closing price is not above Friday's high (1.2169), a bearish wave will develop with 1.1880 as the target, while the support level at 1.2070 will act as an intermediate level.

Tomorrow, the UK will release employment data, as well as Manufacturing and Services PMIs. Forecasts suggest a slight increase, but projections for the eurozone and the US are negative. Therefore, it is advisable to wait for these reports, as there is a high chance that the UK data could turn out to be weaker than expected.

On the 4-hour chart, the price is trying to approach the MACD line (blue moving average), but it is hindered by the balance line (red). In addition, the Marlin oscillator, while in the positive territory, is starting to turn downward. A breakthrough above the MACD line (1.2200) will allow the pound to rise to the first target of the uptrend at 1.2307. Breaking through the 1.2070 price level will extend the downtrend to 1.1880.