FX.co ★ Forecast for GBP/USD on August 21, 2024

The British pound is rising faster than expected. There are just 70 pips left to the target level of 1.3080, and the Marlin oscillator on the daily chart has yet to reach the horizontal level of 0.0198.

If the price hits the target level and Marlin touches its resistance and reverses, it will also be considered a divergence. However, a divergence is already present since the price exceeded the peak of July 17th yesterday. It is moving towards a potential medium-term decline for the pound. This may be triggered by Powell's Friday speech at the Jackson Hole symposium. We believe that the Federal Reserve chair will temper market expectations for an accelerated pace of rate cuts.

In the 4-hour chart, the Marlin oscillator rarely declines, while the price rises by 2.5 figures while maintaining the divergence created earlier. The price might reverse downward towards 1.2760 from the current levels or the resistance at 1.3080. If the price moves above 1.3080, the target of 1.3160 could be achieved with a strong short-term movement.