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

GBP/USD

On Friday, the British pound rose by 68 points. Trading volume was the highest since March 24th, which is likely related to the bears closing their Stop-Loss orders. If this is the case, the resistance at 1.2598 appears to be the limit. However, if these were direct purchases, the price could surpass 1.2666, and the further course of events would depend on the final choice of the dollar's direction on Thursday.

Thus, the best tactic would be to trade cautiously if the price overcomes the technical levels. The Marlin oscillator shows an intention to reverse downward. This may be a temporary weakness of the indicator. The first sign of the downward reversal is when the price falls below 1.2447. Overcoming the MACD line support around 1.2350 will confirm the reversal.

The bullish sentiment is strong on the four-hour chart. The price has made an effort to move away from the indicator lines, the Marlin oscillator has surged upwards, and it still has the potential for further growth. It is likely that the nearest target of 1.2598 will be reached.