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16.05.202305:00 Forex Analysis & Reviews: Forecast for GBP/USD on May 16, 2023

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GBP/USD

Yesterday, the British pound grew by 80 points, but it is still within the bounds of a correction from the fall from 1.2678. The signal line of the Marlin oscillator (daily) is in negative territory, so the price may rise a bit more in continuation of this correction.

On the four-hour chart, the price has reached the 38.2% correction level and is consolidating under it. If the price manages to break through yesterday's high at 1.2533 (and a more confident signal with crossing Friday's peak of 1.2539), then it can continue to rise to the next Fibonacci correction level of 50.0% (1.2560) and even to the level of 61.8%, where strong technical lines of the target level of 1.2583 and the MACD line on the 4-hour chart have already accumulated.

Overcoming this strong resistance may extend the rally to 1.2678 or even higher. The end of the correction will be indicated by the price consolidating below the Fibonacci level of 23.6% at the price of 1.2498.

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