For Traders

Analytical Reviews

Technical analysis

03.01.202405:11 Forex Analysis & Reviews: Forecast for GBP/USD on January 3, 2024

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

GBP/USD

Amid investors' flight from risk on Tuesday, the British pound lost 111 pips and breached the support of the balance indicator line on the daily chart. This morning, the price quickly returned above the line, but the bulls' main goal for now is to close the day above the nearest resistance at 1.2645, otherwise, we may see a consolidation below this mark, and the bears could gain the upper hand, pushing the quote to 1.2524.

The Marlin oscillator has settled in a downtrend, so sellers have a good chance. If the price consolidates above 1.2645, the price could rise towards 1.2745, and a breakthrough of 1.2745 will provide an optimistic outlook towards 1.2930 - the upper band of a long-term price channel.

On the 4-hour chart, the price has settled below the balance and MACD indicator lines, as well as the level of 1.2645. The Marlin oscillator has also settled in negative territory. Considering the uptrend, we can consider the pound's decline as a short-term effect. The first signal for an upward move will be the price consolidating above the level of 1.2645, further confirmed by the price breaking above the MACD line and the 1.2705 mark. However, if the price fails to exhibit growth, it will fall, with 1.2524 as the target. We await further developments.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.