FX.co ★ Forecast for GBP/USD on July 19, 2023

GBP/USD

The British pound experienced increased volatility yesterday and closed the day down by 38 pips. It has reached the 1.3034 target, and now the price needs to consolidate below that level to enable further advancement towards 1.2847 (June 16th high).

Today, the UK will release its inflation data for June, and it could disrupt bearish sentiments in the market as the forecasts are pessimistic: the core CPI is expected to remain unchanged at 7.1% YoY, while the overall CPI may decrease, but not significantly, from 8.7% YoY to 8.2% YoY.

On the four-hour chart, the price is making its first attempt to break away from the 1.3034 level downwards. On the way to 1.2847, we can see the MACD line at 1.2962. This serves as an important support level, and from it, the price could move to the upside and end the corrective phase. We expect the pair to further rise towards 1.3180. In order to extend the decline, the price needs to consolidate below 1.2962.