Forecast for GBP/USD on February 5, 2024

GBP/USD

On Friday, the British pound sharply fell by 110 pips, and this morning it broke below the support level at 1.2610. If the price successfully breaches the MACD line on the daily timeframe (1.2584), it may reach the target level of 1.2524. If it falls further, the price could aim for 1.2373.

However, if the price returns above 1.2610 and consolidates above this mark, it could resume an upward move with 1.2745 as the target. The Marlin oscillator returned to the downward territory after a false break above (arrow), which is another factor in favor of extending the decline.

On the 4-hour chart, the price is falling below both indicator lines, and the Marlin oscillator's signal line is sharply descending on the bearish half. Overall, the bears have the advantage.