FX.co ★ Forecast for GBP/USD on August 28, 2024

Yesterday, the British pound broke through the resistance level of 1.3220 with a clear intention to aim for the level of 1.3300 (a long-term average). The 1.3360 target is above the 1.3300 level, but without support from external markets, even the highly volatile pound will find it very difficult to reach this level.

Gold approached strong resistance at the peak of August 20th yesterday. US and European stock indexes closed mixed yesterday, and today, Asian indexes are already in the red zone. The daily Marlin Oscillator shows the intention to reverse from the overbought zone.

In the 4-hour chart, the Marlin Oscillator, influenced by the price, has returned to its range but has also formed a divergence with the price. This divergence will remain if the price reaches the target level of 1.3300, but we expect a reversal into a deep correction with a probability of 70%.