FX.co ★ Forecast for GBP/USD on October 3, 2023

GBP/USD

The British pound fell by 110 pips yesterday, coming very close to the target level of 1.2070. Since the price is fluctuating, we can say that it has reached this level.

However, since the price has settled below the embedded price channel line, it may continue to fall to the next nearest channel line, near the target level of 1.1900 (a series of record extremes from August 26, 2022). The critical resistance level for the bears would be the channel line (1.2182) that the price has surpassed - a break above this mark paves the way for the price to reach the target of 1.2307.

On the 4-hour chart, the price is falling below the balance and MACD lines, and the Marlin oscillator is falling in the downtrend territory. The pound needs to consolidate below the 1.2070 support level to pave the way for 1.1900.