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

GBP/USD

The British pound calmly reacted to the frenzy regarding speculations of four rate cuts by the Federal Reserve. Yesterday, a black candle was marked, and the support of the MACD line was tested on the daily chart.

Now, the price may repeat such attempts time and again until external conditions weaken and the pound confidently reaches the target level of 1.2633 (the peak of May 3). The Marlin oscillator is heading downwards. On the 4-hour chart, the balance indicator line keeps the price from rising, a sign of the current short-term trend.

The signal line of the Marlin oscillator climbed above the zero line, but it seems to have been a false breakout, after which the price might forcefully decline. Alternatively, the price must break above the MACD line (1.2826) to confirm the oscillator's intention to develop short-term growth. Our main scenario is bearish.