FX.co ★ Forecast for GBP/USD on February 1, 2023

Slightly weaker UK economic indicators and the upcoming strike in England with potential participation of 500,000 people weakened the pound by 27 points yesterday. So far we see only preconditions for the price reversal, even the leading Marlin oscillator on the daily chart stays in the positive (growing) area.

Actually the price is developing in the upper half of the 1.2155-1.2420 range, above the MACD indicator line (1.2227). Overcoming the MACD line will not ensure the price reversal, because support at 1.2155 (high on November 24) is located below it. Consolidating under the line will open the way to the target level of 1.1933. Falling further to 1.1737 is possible.

On the four-hour chart, the price falls below the indicator lines, settling below them since Monday. The Marlin oscillator is also in the negative territory since Monday. Expect GBP/USD to decline on the Fed meeting.