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

The British pound was very bullish yesterday, rallied 117 pips, but it missed its 1.2155 target, stopping on the way to the February 21 high. The day closed under the signal level of 1.2030, breaking through it reveals the 1.1914 target.

The technical situation has become more complicated over the past two days. Now to confirm the primary signal, the signal line of the Marlin oscillator should return under its own inclined support of turquoise color, in order to neutralize the previous false-breakout below it on February 24 (tick). We expect such a development, but it will take at least a day to materialize. The nearest target for the bears is 1.1914, which plays the role of an intermediate level in the current situation; then we expect a development to 1.1737, the high on September 13, 2022.

On the four-hour chart, the price needs to settle under the MACD line (1.1997), and that is what today will be for. Also, the Marlin oscillator should consolidate in negative territory, and then the price can reach the target level of 1.1914 without a lot of effort.