FX.co ★ Forecast for GBP/USD on January 5, 2024

GBP/USD:

The British pound showed positive trades yesterday after the release of US ADP employment data but lacked support from other instruments, closing the day with a modest 17-point gain.

This morning, it is gradually moving upwards, with a target ahead at 1.2745. Overcoming this level will open up a second target at 1.2837, followed by a potential move towards the upper band of the price channel around 1.2930. The Marlin oscillator is approaching the uptrend territory.

On the 4-hour chart, the price initially failed to settle above the balance and MACD indicator lines, leading to a technical pullback in price. However, the Marlin oscillator's signal line managed to stay in the positive territory, helping the price break through the moving averages. If the price can stay above the MACD line, above the 1.2707 mark, it will open up the nearest target at 1.2745.