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

GBP/USD

Yesterday, the British pound overcame the embedded line of the descending price channel and reached the target level of 1.2447. In today's Asian session, the price quickly returned above the price channel line, strengthening the brewing convergence. The nearest bullish target is 1.2547 (the peak of June 2 and the low of August 25), followed by the 23.6% Fibonacci retracement level at 1.2615. Then, the target range is 1.2684-1.2715 (target level and 38.2% Fibonacci retracement level).

Consolidation below 1.2447 can break such a corrective and basic plan. In this case, GBP may continue to fall towards the target support at 1.2307, which is the May 26 low.

On the 4-hour chart, the signal line of the Marlin oscillator broke above its own descending channel. Simultaneously, a convergence has formed between the price and the oscillator. Initial conditions for growth have been created and are being implemented.