Currency pair Pound Dollar GBP/USD ends the trading week near the 1.2541 area. The pair continues to move within the correction and the downward channel. Moving averages indicate a bearish trend. At this point, we should expect an attempt to continue the correction and test the resistance area near the level of 1.2705. Further, the beginning of the fall of the Pound Dollar quotes to the region below the level of 1.2005.
GBP/USD Forecast and Analysis July 8 — 12, 2019
In favor of the fall of the British Pound will test the downward trend line on the indicator of relative strength. The second signal will be a rebound from the upper boundary of the descending channel. Cancellation of the option of reducing the pair GBP/USD in the current trading week July 8 — 12, 2019 will be a strong growth and a breakdown of the area of 1.3085. This will indicate a breakdown of the upper boundary of the channel and continued growth in the region above the level of 1.3375. Confirmation of the fall of GBP/USD will break the lower boundary of the rising channel and close below 1.2365.
Important news from the UK that may affect the Pound Dollar rate is worth highlighting: United Kingdom Manufacturing Production m/m, Bank of England (BoE) Governor Carney Speech.
GBP/USD Forecast and Analysis July 8 — 12, 2019 implies an attempt to test the resistance level near the 1.2705 area. Where can we expect to continue the fall of the pair with the goal below area 1.2005. An additional signal in favor of the decline is the test of the downtrend line on the relative strength indicator. Cancellation of the fall of the pair Pound Dollar pair will be a strong growth and the breakdown level of 1.3085. In this case, we can expect the pair to continue to grow with a potential target above the level of 1.3375.