Forecast for GBP/USD on January 5, 2021

GBP/USD

The British pound experienced a double blow yesterday: the dollar's general intention to strengthen, which led to a decline in commodities and stock markets, and the announcement of a national quarantine by Prime Minister Boris Johnson. The pound fell 90 points.

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The daily chart shows that the fall was reflected when a double divergence formed with the Marlin oscillator, although the price itself created four new highs since the beginning of the divergence on November 11. We are waiting for the price at the first target of 1.3320, determined by the MACD line.

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The four-hour chart shows that the fall stopped at the MACD line. Getting the price to settle below it, under 1.3555, will become a signal for action, that is, for selling the GBP/USD pair. Also on this scale, the price divergence is in action with the oscillator, while Marlin is already in the negative area.

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