Currency pair Pound Dollar GBP/USD ends the trading week near the 1.3098 area. The pair continues to move within the framework of strong growth. Buyers were able to reverse the formation of a large «Head and Shoulders» reversal pattern. Moving averages indicate a bearish trend, however, prices have broken through the areas between the signal lines upward, indicating pressure from buyers and a potential continuation of the rise in the British Pound against the US Dollar at current levels. At this point, we should expect an attempt to continue the development of growth and test the resistance area near the level of 1.3325. Further, the rebound and the beginning of the fall in the Pound/Dollar quotes to the area below the level of 1.1925.
GBP/USD Forecast and Analysis August 3 — 7, 2020
An additional signal in favor of the fall of the British Pound will be a test of the trend line on the relative strength index (RSI). The second signal will be a breakdown of the lower border of the ascending channel. Also, one should not exclude the formation of the «Expanding Formation» model. Cancellation of the option to drop the GBP/USD pair in the current trading week August 3 — 7, 2020 will be a strong growth and a breakdown of the 1.4055 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.4565. Confirmation of the fall in the GBP/USD currency will be a breakdown of the support area and closing prices below 1.2505, this will indicate the pressured lower border of the ascending channel.
Among the important news from the UK that may have an impact on the Pound/Dollar rate, it is worth highlighting: Bank of England (BoE) Interest Rate Decision, Statement by Bank of England (BoE) Governor Bailey Speech).
GBP/USD Forecast and Analysis August 3 — 7, 2020 implies an attempt to test the resistance level near the 1.3325 area. Where can we expect the pair to continue falling with a target below the 1.1925 area. An additional signal in favor of the fall will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to reduce the pair Pound/Dollar will be a strong growth and a breakdown of the level of 1.4055. In this case, we should expect the pair to continue to grow with a potential target above the level of 1.4565.
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