FX.co ★ Forecast for GBP/USD on May 5, 2023

GBP/USD

As a result of yesterday, the pound edged up, managing to reach the target level of 1.2598. Now, under the pressure of the forming divergence with the Marlin oscillator, a reversal to the support of 1.2447 (the peak of January 23) may follow. Overcoming it will enable us to test the strength of the support of the MACD indicator line (1.2366).

The driver of today's movement is the US employment report. If the data turns out to be weaker than estimates, the pair could rise to the target resistance of 1.2666 (the peak of May 27, 2022). In this case, the divergence from the technical side will become more pronounced.

On the four-hour chart, the divergence is also trying to consolidate and develop. In general, the pound is ready to fall. The MACD line at the 1.2500 mark serves as intermediate support.