Currency pair Pound Dollar GBP/USD completes the trading week near the 1.2754 area. The pair continues to move as part of the decline and start working out the «Head and Shoulders» model. Moving averages indicate a bearish trend. At this point, we should expect an attempt to develop an upward correction and test the resistance area near the level of 1.2945. Further, the beginning of the decline in quotations of the Pound/Dollar to the area below the level of 1.2055.
GBP/USD Forecast and Analysis May 20 — 24, 2019
In favor of the fall of the British Pound will test the downward trend line on the indicator of relative strength index (RSI). The second signal will be a rebound from the «Neckline» of the head and shoulders reversal pattern. Cancellation of the option to reduce the pair GBP/USD in the current trading week of May 20 — 24, 2019 will be a strong growth and a breakdown of the area of 1.3215. This will indicate a breakdown of the upper boundary of the channel and continued growth in the region above the level of 1.3750. Confirmation of a fall in GBP/USD will be a breakdown of the support area and the close below 1.2745.
Among the important news from the UK, which may have an impact on the Pound Dollar rate, it is worth highlighting: Bank of England (BoE) Inflation Report Hearings, United Kingdom Retail Sales m/m.
GBP/USD Forecast and Analysis May 20 — 24, 2019 involves an attempt to test the resistance level near the 1.2945 area. Where can we expect to continue the fall of the pair with the goal below area 1.2055. An additional signal in favor of reducing will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall of the pair Pound Dollar pair will be a strong growth and the breakdown level of 1.3215. In this case, we should expect the pair to continue to grow with a potential target above the level of 1.3550.