Currency pair Pound Dollar GBP/USD completes the trading week near the area of 1.3073. The pair continues to move as part of the correction and formation of the «Head and Shoulders» reversal pattern. Moving averages indicate a bullish trend. At this, we should expect an attempt to grow and test the resistance area near the level of 1.3145. Further, the rebound and the beginning of the fall of the Pound/Dollar quotes to the area below the level of 1.1985.
GBP/USD Forecast and Analysis January 13 — 17, 2020
In favor of reducing the British Pound, a test of the downtrend on the relative strength index (RSI) will come out. The second signal will be a rebound from the upper boundary of the downward channel. Cancellation of the GBP/USD pair fall option in the current trading week January 13 — 17, 2020 will be a strong growth and a breakdown of the 1.3505 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.3845. A confirmation of the fall of the GBP/USD currency will be a breakdown of the support area and closing prices below 1.2725. This will indicate the completion of the formation of the «Head and Shoulders» reversal pattern.
Among the important news from the UK that may affect the Pound/Dollar exchange rate, it is worth highlighting: United Kingdom Manufacturing Production m/m, United Kingdom Gross Domestic Product (GDP) m/m, United Kingdom Retail Sales m/m.
GBP/USD Forecast and Analysis January 13 — 17, 2020 suggests an attempt to test the resistance level near the area of 1.3145. Where can we expect the pair to continue to fall with the target below the area of 1.1985. An additional signal in favor of reducing will be a test of the broken trend line on the relative strength index (RSI). Cancellation of the fall option for the Pound/Dollar pair will be a strong growth and a breakdown of the level of 1.3505. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.3845.