FX.co ★ Forecast for GBP/USD on October 18, 2022

The pound rose by 184 points on Monday, but a significant part of this growth fell on the gap (67 points) and after the unsuccessful attack on the strong resistance of the two indicator lines of the daily scale, the price risks returning to 1.1170 and even going under support in the process of closing the week formed at the opening gap.

The rise in the pound was based on the psychological factor of Jeremy Hunt's cancellation of Kwasi Kwarteng's "mini-budget". In fact, nothing happened in the UK economy. Even the question of Liz Truss's resignation is coming to naught.

A decline below 1.1305 will signal that the price will still head towards 1.1170. Reaching the target level of 1.1500 will further accelerate the reversal momentum.

The price has already managed to form a weak divergence with Marlin on the H4 chart. In this situation, it is not indicative, but is also consistent with the option of closing the gap soon. Moreover, the MACD line is already waiting for the price at the target level of 1.1170.