FX.co ★ Forecast for GBP/USD on May 20, 2024

GBP/USD

Last Friday, the British pound touched the support of the MACD indicator line with its lower daily shadow for the second time in the last two days and it confidently started rising, gaining 32 pips by the end of the day. The upward movement persists. The Marlin oscillator is trying to enter the overbought zone, but it has not done so yet. In this situation, the price may reach the nearest target level of 1.2745 and then the upper boundary of the global descending channel around the level of 1.2790.

In the current situation, we do not expect the pound to leave the price channel, as it would signify the creation of a new upward trend, indicating a new currency paradigm in the world. However, a false move is also possible.

On the 4-hour chart, the price continues to rise briskly, managing to close the gap at the market opening. The Marlin oscillator is turning upwards after successfully discharging from the overbought zone. This creates the conditions for a divergence with the price, indicating that the reversal will occur precisely from the level of 1.2745.