Currency pair Pound Dollar GBP/USD ends the trading week near the 1.3473 area. The pair continues to move as part of the correction and the formation of the bearish “Wolfe Wave” pattern. Moving averages indicate a bullish trend. Prices moved up from the area between the signal lines, which indicates 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 grow and test the resistance area near the level of 1.3565. Further, the rebound and the beginning of the fall in the Pound/Dollar quotes to the area below the level of 1.2305.
GBP/USD Forecast and Analysis December 14 — 18, 2020
An additional signal in favor of the fall of the British Pound will be a test of the trend resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper boundary of the “Wolfe Wave” pattern. Cancellation of the option to drop the GBP/USD pair for the current trading week on December 14 – 18, 2020 will be a strong growth and a breakdown of the 1.3995 area. This will indicate a breakdown of the important resistance area and continued growth to the area above the level of 1.4385. Confirmation of the fall in the GBP/USD currency will be a breakdown of the support area and closing prices below 1.3015.
Among the important news from the UK that may affect the Pound/Dollar rate, it is worth highlighting: United Kingdom Claimant Count Change, Bank of England (BoE) Interest Rate Decision, United Kingdom Retail Sales m/m.
GBP/USD Forecast and Analysis December 14 — 18, 2020 suggests an attempt to test the resistance level near the 1.3565 area. Where can we expect the pair to continue falling with a target below the 1.2305 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 1.3995. In this case, we should expect the pair to continue to grow with a potential target above the level of 1.4385.
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