FX.co ★ Forecast for GBP/USD on January 11, 2023

Yesterday, the British pound tried to settle above the target level of 1.2155 (low of May 13 and close to the high on November 24), but the consolidation failed. The Marlin oscillator did not reach the zero line, still in the descending trend area. The probability increases, either a reversal, then an attempt to cross the support at 1.1933 along with the MACD line.

Fundamental speculative reasons may prevent the pound from going down, the main one is the release of the December CPI in the US, which is expected tomorrow. And specifically to the technical situation under consideration, a false sharp movement to the upside can be obtained for this fundamental reason, since consolidation is short-term, trading volumes are high and warns about a possible repositioning of big players. The false rally can be expressed by the fact that the price may not reach the 1.2410 target level, it will soon return under 1.2155 and further below 1.1933.

On the four-hour chart, the price is moving below 1.2155, but as long as the Marlin oscillator stays in the green zone, such growth to the level, except for the continuation of the sideways movement, does not say anything. The main sign of a reversal is when the price crosses the MACD line (1.2040) on this chart.