Currency pair Pound Dollar GBP/USD completes the trading week near the area of 1.3106. The pair continues to move within the correction and the downward channel. Moving averages indicate a lateral trend. However, prices broke through the area between the signal lines, which indicates pressure from the bulls. At this, we should expect an attempt to reduce and test the support area near the level of 1.2435. Further, the rebound and the beginning of the growth of the Pound/Dollar quotes to the area above the level of 1.4085.
GBP/USD Forecast and Analysis December 9 — 13, 2019
In favor of the rise of the British Pound, a test of the ascending trend line on the relative strength index (RSI) will come out. The second signal will be the completion of the formation of the «Head and Shoulders» reversal pattern. Cancellation of the growth option for the GBP/USD pair in the current trading week December 9 — 13, 2019 will be a fall and a breakdown of the area of 1.2025. This will indicate a breakdown of the support area and continued decline to the area below the level of 1.1705. A confirmation of the growth of the GBP/USD currency will be a breakdown of the resistance area and closing above the level of 1.3225.
Among the important news from the UK that could affect the Pound/Dollar exchange rate, it is worth highlighting: United Kingdom Manufacturing Production m/m, United Kingdom Gross Domestic Product (GDP) m/m.
GBP/USD Forecast and Analysis December 9 — 13, 2019 suggests an attempt to test the support level near the 1.2435 area. Where can we expect continued growth of the pair with a target above the area of 1.4085. An additional signal in favor of the rise will be a test of the uptrend line on the relative strength index (RSI). The cancellation of the growth option for the Pound/Dollar pair will be a fall and a breakdown of the level of 1.2025. In this case, we should expect the pair to continue to fall with a potential target below the level of 1.1705.
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