Forecast for GBP/USD on May 1, 2020

GBP/USD

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.

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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.

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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..

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