Forecast for GBP/USD on August 8, 2024

On Wednesday, the British pound made a corrective attempt to rise, where it encountered strong resistance at the balance and MACD (1.2727) indicator lines and retreated to the day's opening level. The price consolidated below the indicator lines, and the Marlin oscillator is working on its downward trajectory.

The price is headed toward the support level of 1.2633. Consolidating below this level would open the target of 1.2517 (the February 5 low). The 4-hour chart shows that the pair's rise was relatively small after the convergence, as the pound met with higher-scale resistance.

However, there is now a risk of forming a double convergence, which may occur after working through the target support at 1.2633. We do not yet anticipate a market reversal, so we expect horizontal movement in the range of 1.2633-1.2727 in the event of such double convergence.