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

GBP/USD

On Friday, the British pound momentarily surged by more than 100 pips, but quickly retreated to its initial positions, closing the day up by only 12 pips. The upper shadow corresponded to the line of the descending channel.

Overall, the price has settled above the level of 1.2525, but since it has already reached both bullish targets (the channel line and the level of 1.2596), the price may return below the support and even move towards 1.2427. The Marlin oscillator is in growth territory but has significantly slowed down its ascent.

On the 4-hour chart, the price has stalled on the balance indicator line. The Marlin oscillator is at the zero neutral line. Its move into negative territory may help the price overcome the support at 1.2525. Further, the price will encounter support from the MACD line (1.2495). Breaking this support completely opens the path to 1.2427.