FX.co ★ Forecast for GBP/USD on July 18, 2023

GBP/USD:

Yesterday, the British pound slightly fell, reinforcing the bearish scenario by a small margin. The bears still have the same task - to consolidate below the 1.3034 level in order to gather strength and return to the June 16th high at 1.2847. However, by consolidating below this mark, they accomplish a more important task - removing the risk of a resurgence towards 1.3180.

The Marlin oscillator is currently falling. The US retail sales data will be published in the evening, with forecasts of 0.5% for June, which could convince the market to further sell the pound.

On the four-hour chart, the signal line of the Marlin oscillator has entered the bearish territory. This circumstance significantly lowers the probability of forming a convergence but does not completely exclude it yet. Consolidation below 1.3034 will fuel the bears to step up their efforts to test the nearest support level at 1.2937, represented by the MACD line.