FX.co ★ Forecast for GBP/USD on February 6, 2024

GBP/USD

The pound's almost two-month consolidation in the range of 1.2610-1.2745 has finally ended with a powerful bearish breakout, as it surpassed the MACD line. The pair has reached the nearest target at 1.2524. Overcoming this support will open up the next target at 1.2373. Next, the price will try to work with the embedded line of the price channel around the support level of 1.2261.

On the 4-hour chart, the price is gathering strength ahead of the support at 1.2524. The Marlin oscillator is correcting higher from an oversold condition that is not very deep. After completing the corrective move, with the price consolidating below 1.2524, we expect further downward movement.

We are also closely monitoring the US stock market. In general, the growth since October 27, 2023, and in a broader view since October 13, 2022, appears to be incomplete, but if the market has its own reasons to start a reversal, counter-dollar currencies may not rise further.