Forecast for GBP/USD on January 4, 2021

GBP/USD

For the last 3-4 days, the pound has been rising under the risk of a reversal at any moment in time. A double divergence has already formed on the daily chart, and the price is currently in the free roaming range of 1.3624-1.3765. According to our main scenario, we are waiting for a price reversal to a medium-term decline in this range, that is, settling under the MACD line in the 1.3335 area.

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The growth option growth seems to be more difficult: surpassing 1.3765 pushes the price into a huge range of uncertainty of about five patterns, formed in January-April 2018.

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There are no more or less significant signs of a reversal on the 4-hour timescale. A Marlin divergence is expected, but is not yet ready. We look forward to clarifying the situation in the coming days. Falling under the MACD line, below 1.3540, will become a sign and a condition for moving towards 1.3335.

The material has been provided by InstaForex Company - www.instaforex.com