FX.co ★ Forecast for GBP/USD on January 18, 2023

The British pound gained 93 points on Tuesday. On the daily chart, the Marlin oscillator rose as well. The price is noticeably above the balance indicator line. The 1.2410 target is available.

A lot of important data on the UK and US economy will come out today, which, based on the forecasts, may contribute to this growth. UK Consumer Price Index for December is expected to decrease from 10.7% y/y to 10.5% y/y, CPI monthly growth may show 0.4%, Producer Price Index for November may increase from 14.8% y/y to 16.4% y/y.

In the US, the PPI could decline 0.1% in the December estimate (6.8% y/y vs. 7.4% y/y in November), and December retail sales could show a decline of 0.8%.

The first signs of a breakdown of the double divergence appeared on the four-hour chart. The signal line of the Marlin oscillator went above the line forming the divergence. At the same time, the line itself is in the positive area. The price is rising above both indicator lines - the balance line and the MACD line.