FX.co ★ Forecast for GBP/USD on August 8, 2023

GBP/USD:

The British pound did not give up the 1.2880 target. On Monday, the pound sterling settled above the MACD indicator line on the daily chart, with a rising Marlin oscillator. This morning, the price returned to the support of the indicator line. The main scenario suggests that the price will bounce off this line and resume its upward movement, with the target at the 50.0% Fibonacci retracement level (1.2880).

In order to develop an alternative bearish scenario, the price needs to break below the support level of 1.2720, which it failed to do yesterday. To confirm the bearish strength, the price should also break below the lower band of the support range (1.2666), which is unlikely to happen in just a day.

On the four-hour chart, the price slightly reversed as it approached the MACD line. The Marlin oscillator also turned slightly downward but is still in the positive territory, holding the price with a bit of strength. The pair will move upwards after the price firmly settles above the MACD line (1.2788), which coincides with yesterday's high.