FX.co ★ Forecast for GBP/USD on February 22, 2023

GBP/USD rose by 0.59% (70 pips) on Tuesday despite the 0.31% increase in the dollar index. The reason was the latest business activity data in the UK, which came out better than expected. Manufacturing PMI reportedly increased from 47.0 to 49.2 in February, while Service PMI was up from 48.7 to 53.3.

If US data does not change the market sentiment until the end of the week, pound can grow up to 1.2300, which is also where the MACD line is located in the daily (D1) timeframe. But to achieve this, there should be a consolidation above the nearest resistance level of 1.2155. There is a high chance (65%) of seeing this scenario as the Marlin oscillator is already up.

On the four-hour (H4) timeframe, there was a reversal from the support of the MACD line, which is also where the low of February 15 was located. It consolidated above the balance line (red), indicating that the mood of speculators is to buy. Expect another consolidation above 1.2155.