FX.co ★ Forecast for GBP/USD on July 31, 2023

GBP/USD

On Friday, pound failed to surpass the support of the MACD line, leading to a correction in the daily timeframe. The Marlin oscillator also fell into negative territory, which means that the pair will likely continue its decline within the target support range of 1.2666-1.2720.

As the MACD line already rose above the upper boundary of this range, testing will be difficult. However, a successful breakout below the lower boundary of 1.2666 will open the next target level - 1.2527.

Signs of reversal can be seen in the four-hour timeframe. It emerged after the false breakout above the balance indicator line and the false breakout of the Marlin oscillator into positive territory. Most likely, this will lead to a deeper price retreat from the balance line and a return of the Marlin oscillator into the downward trend zone. This might happen soon, especially after the pair falls below the level of 1.2839.

Alternatively, a correction may occur in the pair, and this can either take place with a rebound from the intermediate resistance at 1.2903, or a move towards the MACD line around 1.2952.