16.05.202405:20 Forex Analysis & Reviews: Forecast for GBP/USD on May 16, 2024

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GBP/USD

Yesterday, the pound took advantage of the bullish momentum in adjacent markets and it managed to overcome strong resistance from trend and indicator lines at 1.2596 and 1.2648.

If the pound does not run out of steam in the shortest possible time, then there's an 80% probability that it may reach the nearest target of 1.2745, and a 40% probability that it hits the target of 1.2794 (the upper boundary of the price channel). A similar pattern was observed in August 2015, after which the pound steadily declined for two and a half months, and in May 2019, after which the pound fell for 3 months by 10 figures.

On the 4-hour chart, the price is starting a corrective move after sharply rising on Wednesday. However, we are not expecting a significant bearish reversal at the moment. The support for the correction is provided by the daily MACD line at the level of 1.2650.

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