FX.co ★ Forecast for GBP/USD on May 10, 2021

GBP/USD

Last Friday, the British pound jumped 96 points, closing the day above the MACD indicator line on the daily chart. This is a sign of growth and it took place this morning when the price surpassed the target level of 1.4016, which is the high on March 4 (1.4072 target). But the growth occurred with a gap, and the gap may close when the price moves below the target level of 1.3975, which will mean that the price will also move below the MACD line, and this is already a reversal signal.

In the current situation, the range between the levels 1.3975 and 1.4072 is an area where the price can freely move. Today there is no important news, and tomorrow, a number of Federal Reserve representatives are set to speak and they will describe their vision of the employment situation and the economy as a whole.

On the H4 chart, the price is in a neutral situation above the level of 1.4016. Today, we will simply observe in which direction this balance will swing, that is, how the gap will be closed - from the current price, or after a slight continuation of growth.