FX.co ★ Forecast for GBP/USD on January 16, 2024

GBP/USD

Pound fell by 23 pips on Monday, and this morning lost another 25 pips. Market players probably have pessimistic expectations over the UK employment data coming out today, as forecasts point to an increase in unemployment from 4.2% to 4.3%.

CPI data for December will be published tomorrow, and it may show a decrease from 3.9% to 3.8% year-over-year. If this happens, pound will fall to 1.2610. A further decline will push the price lower to 1.2524.

On the H4 chart, the pair surpassed the first target level, heading towards the next target level of 1.2689. Consolidating below it will increase the chance of a fall to 1.2657.

The bearish trend will likely continue since indicators, such as the Marlin oscillator, turned down.