FX.co ★ Forecast for GBP/USD on May 3, 2023

GBP/USD

Yesterday, the British pound fell by 26 points, with the lower shadow working off the support level at 1.2447. This morning, the price extends its bullish correction, but the Marlin oscillator on the daily chart is already in negative territory.

And since we see that the price has already formed a double divergence with the oscillator, we expect a breakthrough of the nearest support and further decline to the MACD line near 1.2366. Overcoming this line opens the target at 1.2273 (the low of April 3).

On the four-hour chart, the price did not consolidate under the MACD indicator line, probably out of reluctance to get ahead of today's Federal Reserve decision. The Marlin oscillator is in the downtrend area, it keeps the price from rising further. The 1.2273 target coincides with the low of April 21. We wait for the Fed's decision tonight.