The Pound/Dollar GBP/USD currency pair continues to move within the framework of the decline development and the formation of the “Head and Shoulders” reversal pattern. At the time of the forecast publication, the Pound to US Dollar exchange rate on Forex is 1.3089. Moving averages indicate the presence of a short-term bullish trend. Prices have broken through the area between the signal lines downwards, which indicates pressure from sellers of the currency pair and a potential continuation of the instrument’s decline. At the moment, we should expect an attempt to develop a decline in the British Pound against the US Dollar and a test of the support area near the 1.3060 level. Where should we expect the pair quotes to bounce back upwards and the British Pound against the US Dollar currency pair to grow. The target for the pair to rise, within the Forex forecast, is the area at 1.3305.
GBP/USD Forecast and Analysis for October 16, 2024
An additional signal in favor of the pair’s growth will be a test of the support line on the relative strength indicator (RSI). The second signal in favor of a decline will be a rebound from the lower border of the “Head and Shoulders” reversal pattern. The option of the Pound Dollar pair rising will be cancelled by a fall and a breakout of the support area with the price fixing below 1.2940. This will indicate a breakout of the support level and a continuation of the Pound Dollar pair’s fall to the area at 1.2705. Confirmation of the pair’s growth should be expected with a breakout of the resistance area and the price closing above 1.3145.
GBP/USD Forecast and Analysis for October 16, 2024 suggests an attempt to test the support area near the level of 1.3060. Then, continued growth with a target near the level of 1.3305. An additional signal in favor of the rise of the British Pound will be a test of the support line on the relative strength indicator (RSI). The cancellation of the growth option will be the fall of the British Pound against the US Dollar and a breakout of the 1.2940 area. This will indicate a continuation of the decline on the Forex pair with a potential target below the level of 1.2705.
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