FX.co ★ Forecast for GBP/USD on October 20, 2023

GBP/USD

Yesterday, the pound traded within a 50-point range, closing the day at the opening level. But at the same time, the daily candle settled below the price channel line and the Marlin oscillator shifted to the downtrend territory, increasing the chances of a bearish breakout. If the price breaches the support level at 1.2070, the target would be 1.1880, which is where the price channel line intersects with the MACD line on the weekly chart.

The pound can recover if it breaks above yesterday's high at 1.2190, as this may push the price to climb above the embedded price channel line. The nearest target would be 1.2307.

On the 4-hour chart, the price is trading below the balance and MACD lines, indicating a downtrend. Even the Marlin oscillator has returned below the zero line (indicated by the arrow). However, a price convergence has formed, which is still in effect and provides a chance to turn this into an uptrend.

On the same time frame, the MACD line is slightly above yesterday's high, so the first signal for an upward move would be a break above this level.