FX.co ★ Forecast for GBP/USD on July 3, 2024

GBP/USD

Influenced by the broader market (with the dollar index down 0.20%), the British pound rose by 34 pips on Tuesday. The upward reversal occurred from the support of the intraday MACD line. The Marlin oscillator has broken out of its descending channel and is now in a rush to move into positive territory. This could happen if the price reaches the target level of 1.2745.

Such a driven rise ahead of Independence Day in the US and Friday's employment data is quite risky. Nonetheless, from a purely technical standpoint, the probability of an alternative scenario is increasing— renewed investor interest in risk could weaken the dollar if the US labor data shows disappointing figures. As a result, we might see the British pound around the target level of 1.2940.

On the 4-hour chart, the price has settled above both indicator lines, Marlin is growing in the positive area, and we have an uptrend in the short-term. We await Friday.