Currency pair Pound Dollar GBP/USD completes the trading week as part of the development of a correction near the area of 1.2207. The pair continues to move within the bullish channel. Moving averages indicate a bearish trend. Prices are again testing the area between the signal lines, which indicates pressure from sellers and a potential continuation of the fall of the British Pound against the US Dollar already from current levels. At this point, we should expect an attempt to develop a fall and test the support area near the level of 1.1795. Further, a rebound upwards and continued growth of the Pound Dollar quotes to the area above the level of 1.3465.
GBP/USD Forecast January 16 — 20, 2023
An additional signal in favor of the growth of the British Pound will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the descending channel, which was broken upwards by the bulls. Cancellation of the option to raise the GBP/USD pair in the current trading week January 16 — 20, 2023 will be a fall and a breakdown of the 1.1645 area. This will indicate a breakdown of the support area and a continuation of the fall to the area below the level of 1.1125. A confirmation of the growth of the GBP/USD currency will be a breakdown of the resistance area and closing of the price above the level of 1.2505.
Among the important news from the UK that may have an impact on the Pound/Dollar rate, it is worth highlighting: United Kingdom Claimant Count Change, United Kingdom Retail Sales m/m.
GBP/USD Forecast January 16 — 20, 2023 suggests an attempt to rise and test the support level near the 1.1795 area. Where should we expect the currency pair to continue to grow with the target below the area of 1.3465. An additional signal in favor of the rise will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option for the Pound/Dollar pair will be a fall and a breakdown of the level of 1.1645. In this case, we should expect the pair to continue to decline with a potential target below the level of 1.1125.
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