FX.co ★ Forecast for GBP/USD on February 1, 2024

GBP/USD

Following the outcome of yesterday's Federal Reserve meeting, the British pound became stable below the balance indicator line on the daily chart. The target level of 1.2745 was tested with the upper shadow. The Marlin oscillator continues its sideways movement. Today, it started the day by trading higher.

The main signal that the pound received from the Fed is the Bank of England's commitment to a hawkish stance at today's meeting, following the Fed's example.

Most likely, this stance will be revealed through the voting division among the committee members. As a result, there's a high chance that the pound will rise. After surpassing 1.2745, the first target is 1.2826. Next, we expect the upper boundary of the price channel to be tested around 1.2876. This is the main scenario.

On the 4-hour chart, the price is returning above the MACD line as a continuation of the sideways trend. The Marlin oscillator provides an even greater sign of growth, which entered the growth territory yesterday. We are waiting for the BoE meeting.