FX.co ★ Forecast for GBP/USD on July 25, 2023

GBP/USD:

Yesterday, the British pound slightly retreated, and the signal line of the Marlin oscillator on the daily chart remained below the zero line. Bears are fully prepared for the Federal Reserve to raise rates by 0.25%. They will likely try to establish themselves in the target range of 1.2666-1.2720.

The MACD indicator line has penetrated the aforementioned range, reinforcing it. In order to succeed, it is crucial to stay below this line. On the four-hour chart, a double convergence pattern has formed, indicating a moderate and acceptable scenario of correction towards the level of 1.2903.

The limit of the correction is the MACD line at the level of 1.2964. If the price consolidates above it, the pound may pursue an alternative scenario to target the upper band of the price channel around 1.3138 (daily) or even its liquidation (1.3180).