FX.co ★ Forecast for GBP/USD on May 3, 2021

GBP/USD

On the technical side, the pound's decline by 120 points last Friday can be explained by a hard reversal of the MACD line on the daily chart. The price's first conflict with this line occurred on April 6, then the price lost 225 points in four days. A false exit happened above the line for the second time, the price decreased by one and a half figures on the 20th-23rd. And we saw a third powerful downward reversal of the price from the MACD line on Friday.

Statistically, the third reversal by more than 90% occurs in the medium-term trend, that is, a movement of two weeks or more. Pushing the price to settle below the signal level of 1.3808 (March 16 low) opens the 1.3610 target (January 26 and February 2 low). The price reached the 1.3808 level in time coincided with the Marlin Oscillator touching the zero line. After a short delay, we expect the price to fall further.

The decline is taking place without signs of a deep upward correction on the H4 chart: the price is below the balance and MACD lines, Marlin reacts sluggishly to the corrective growth in the Asian session.