FX.co ★ Forecast for GBP/USD on May 7, 2024

GBP/USD

Yesterday, the British pound closed the day higher, but it only happened for the sake of solidarity with other counter-dollar currencies. However, the quote did not reach the target level of 1.2596, let alone the embedded line of the turquoise-colored price channel, which is slightly above this level. In fact, the balance indicator line stopped the rise. The signal line of the Marlin oscillator is slowly turning downwards.

We believe that the price will not put an effort to either rise or fall until the Bank of England meeting on Thursday. All 9 members of the Monetary Policy Committee are expected to vote to keep the rate unchanged, but there may be a surprise that could exert pressure on the pound. Price consolidation below the level of 1.2525 opens the target of 1.2427, and then it may continue to fall to 1.2370.

On the 4-hour chart, the price and the Marlin oscillator are clearly forming sideways movement. The support at 1.2525 is strengthened by the approaching MACD line, so its status is elevated from an intermediate level to a standard one, and breaking it may reinforce bearish price movement.