07.08.202405:17 Forex Analysis & Reviews: Forecast for GBP/USD on August 7, 2024

Relevance up to 23:00 2024-08-07 UTC--4

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GBP/USD

Yesterday, the pound sterling did well, overcoming the support level at 1.2755 and the support of the MACD line on the daily chart. Now, this line (1.2727) becomes resistance for the correction. After the correction, we expect the price to fall to the next target of 1.2633.

A break above 1.2755 with consolidation may extend the rise to 1.2847. And as long as the Marlin oscillator remains on a downward trajectory, it is unlikely that the price will develop movement above 1.2847.

On the 4-hour chart, a weak convergence has formed. Here, the level of 1.2755 acts as strong resistance for the correction as it approaches the MACD line. If the price breaks above the MACD line on the daily chart (1.2727), this is likely a false breakout, leading to a price drop to 1.2517.

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