Currency pair Pound Dollar GBP/USD completes the trading week near the area of 1.2454. The pair continues to move as part of the correction and the formation of a large reversal pattern. Moving averages indicate a bearish trend. Prices are testing the area between the signal lines, which indicates pressure from sellers and the potential continuation of the fall of the British Pound against the US Dollar at current levels. At this, we should expect an attempt to continue the development of the upward correction and test the resistance area near the level of 1.2705. Further, the rebound and the beginning of the fall of the Pound/Dollar quotes to the area below the level of 1.1325.
GBP/USD Forecast and Analysis July 13 — 17, 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 the formation of the head and shoulders reversal pattern. Cancellation of the option of falling GBP/USD pair in the current trading week July 13 — 17, 2020 will be a strong growth and a breakdown of the 1.3075 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.3605. A confirmation of the fall in the GBP/USD currency will be a breakdown of the support area and closing prices below the level of 1.2005, 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, Statement by Bank of England (BoE) Governor Bailey Speech, United Kingdom Claimant Count Change, United Kingdom Gross Domestic Product (GDP) m/m.
GBP/USD Forecast and Analysis July 13 — 17, 2020 implies an attempt to test the resistance level near the 1.2705 area. Where can we expect the pair to continue to fall with the target below 1.1325. 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 the breakdown level of 1.3075. In this case, we should expect continued growth of the pair with a potential target above the level of 1.3605.
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