FX.co ★ Forecast for GBP/USD on September 24, 2024

Business activity indicators in the UK for September showed a decline. Activity in the services sector decreased from 53.7 to 52.8, against an expected 53.5. The Manufacturing PMI came in at 51.5 points compared to 52.5 in August.

Despite this, the pound sterling managed to rise by the end of the day (unlike the euro, which also struggled due to weak PMI results), likely supported by the slightly weaker-than-expected US PMI, even though they were better than forecasts.

Nevertheless, the pound is weakening by the day. Yesterday's target level of 1.3360 might have been its last achievement. The divergence with the Marlin oscillator is only getting stronger. A return below the 1.3300 level will open a path towards the 1.3220 target.

A minor divergence with the oscillator indicates the price's weakness on the four-hour chart. If the Marlin oscillator moves into negative territory, the divergence will transform into the signal line breaking out of the wide range downward. The battle around the 1.3300 support level will also correlate with the fight with the balance indicator line. This will require help from external (stock) or related (currency) markets.