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FX.co ★ Forecast for GBP/USD on September 22, 2023

Forecast for GBP/USD on September 22, 2023

GBP/USD:

Yesterday, the British pound fell short of reaching the support line of the price channel. On the daily chart, the Marlin oscillator's signal line is breaking out of the wedge and moving downwards, so the price could test the support around the 1.2200 level. However, we do not expect an impulsive fall, as the oscillator's wedge has fully developed, reaching its peak, so the wedge is smoothly transforming into a horizontal trend.

Forecast for GBP/USD on September 22, 2023

A reversal towards the bullish line of the price channel could likely occur from the price channel line at 1.2200, as it aims to rise towards the target level of 1.2444. The Bank of England's decision to leave the interest rate at 5.25%, instead of the expected increase to 5.50%, did not have a significant impact on the British pound. The expected rise has been postponed for now.

Forecast for GBP/USD on September 22, 2023

On the 4-hour chart, the price is falling below both indicator lines, and Marlin is gradually moving deeper into the downtrend. The first sign of a bullish correction would be the price closing above 1.2307. After that, the price will need to overcome the MACD line at 1.2354, which would then open the path to the target at 1.2444.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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