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16.05.2024 05:20 AM
Forecast for GBP/USD on May 16, 2024

GBP/USD

Yesterday, the pound took advantage of the bullish momentum in adjacent markets and it managed to overcome strong resistance from trend and indicator lines at 1.2596 and 1.2648.

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If the pound does not run out of steam in the shortest possible time, then there's an 80% probability that it may reach the nearest target of 1.2745, and a 40% probability that it hits the target of 1.2794 (the upper boundary of the price channel). A similar pattern was observed in August 2015, after which the pound steadily declined for two and a half months, and in May 2019, after which the pound fell for 3 months by 10 figures.

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On the 4-hour chart, the price is starting a corrective move after sharply rising on Wednesday. However, we are not expecting a significant bearish reversal at the moment. The support for the correction is provided by the daily MACD line at the level of 1.2650.

Laurie Bailey,
Analytical expert of InstaForex
© 2007-2024
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