Forecast for GBP/USD on May 1, 2020


The pound rose on Thursday, following the euro, testing the Fibonacci level of 110.0% on the daily chart. Now the prices are retreating from this level.


The price consolidated above the MACD indicator line and formally tends to the new target of 1.2725 - to the Fibonacci level of 100.0%. But the Marlin oscillator marked all the pound's previous weekly growth with a moderate increase, showing reluctance to develop a growing vector. For the price, it is enough to overcome yesterday's high and eventually retreat again so that a reversal divergence forms on Marlin. The ongoing growth is fraught with danger. Another such danger (apart from divergence) can be a downward movement from current levels, it is enough for the price to gain a foothold at the Fibonacci level of 138.2% (1.2422) in order to return the technical picture to the downward with the targets of 1.2235 and 1.1935. Obviously, you should wait until the situation is clear.


The MACD line coincides with the Fibonacci level of 138.2% on the four-hour chart. The formed support at 1.2422 is gaining importance - it can restore the pound's downward trend when the price overcomes this. The situation is likely to clear up next week..

The material has been provided by InstaForex Company -