FX.co ★ Forecast for GBP/USD on January 18, 2024

GBP/USD

Inflation data from the UK showed a rise in the CPI from 3.9% y/y to 4.0% y/y. The core CPI remained at the previous 5.1% y/y instead of falling to 4.9% y/y, while the monthly figure increased by 0.6%. Pound closed the day with a 40-pip gain because of this.

On the daily chart, the pair rose above the balance line, while the Marlin oscillator remained in the area of the downward trend. On the H4 chart, the pair consolidated before the resistance level of 1.2685.

By the time the consolidation ends and the pair breaks above this level, the Marlin oscillator will move into a positive area, helping the price to grow further. From these positions, the MACD line will be an intermediate level on the way to 1.2745. A consolidation above this level will increase the chance of reaching the second target level of 1.2826.