FX.co ★ Forecast for GBP/USD on May 9, 2023

GBP/USD

On Monday, the pound closed the day with a black candlestick, but with an upper shadow, it reached the target level of 1.2666. A renewed divergence starts to form with the Marlin oscillator, and if it strengthens, we can observe a price reversal with the pound falling in the medium-term.

The first target is 1.2447, and the MACD indicator line is approaching this level. The first signal for the reversal will be the price consolidating below the nearest support of 1.2598.

On the 4-hour chart, a divergence has already formed, which increases the likelihood of the price consolidating below 1.2598. Below this level is the MACD line, just around the 1.2547 mark. If the price breaks through it, the path to 1.2447 will become available. There's a high degree of probability that a correction will follow from the MACD line (1.2547).