FX.co ★ Forecast for GBP/USD on May 8, 2023

GBP/USD

On Friday, the British pound opted for the short term alternative scenario – on quite good data on US employment, it overcame the resistance of 1.2598 and approached the target level of 1.2666. Now the whole question is about the slope of the divergence on the Marlin oscillator. The price may continue to rise to the second target of 1.2785, and the divergence will not be broken.

This target level is the average value of the extremes of June 2020 and November 2019. Such a scenario can be realized if the price consolidates above 1.2666. If the price consolidates below 1.2598, the pound will make additional efforts to reach 1.2447.

On the four-hour chart, the price, indicators, and oscillator are growing. The bullish sentiment is optimistic, and the only thing left is to wait for the price to consolidate above 1.2666. The probability of implementing the described scenarios is the same.