FX.co ★ Forecast for GBP/USD on December 19, 2023

GBP/USD

Yesterday, the British pound reached the target support at 1.2645 and turned upwards from it. This was likely driven by the divergence between the price and the Marlin oscillator on the daily chart. However, now we see that the oscillator's signal line reversed upward from the zero line.

If the signal line moves above the line forming the divergence, the divergence will be nullified, and the technical pattern will transform into a Double Bottom. We're seeing an uptrend, so we expect the price to rise through 1.2745 to 1.2837.

On the 4-hour chart, the price is trying to break away from the gravitational pull of the support at 1.2645 and the balance (red) and MACD (blue) indicator lines. The Marlin oscillator has managed to settle in the bearish territory, so the price may linger in the reversal process. Overall, we expect the pound to strengthen.