Currency pair Pound Dollar GBP/USD ends the trading week near the 1.2909 area. The pair continues to move within the framework of the correction and the formation of the «Head and Shoulders» model. Moving averages indicate a bearish trend. At present, we should expect an attempt to develop a bullish correction and test the resistance area near the level of 1.3145. Further, the beginning of the decline in quotations of the Pound/Dollar to the area below the level of 1.2375.
GBP/USD Forecast and Analysis May 6 — 10, 2019
In favor of the fall of the British Pound will test the punctured resistance line on the indicator of relative strength index (RSI). The second signal will be a rebound from the upper boundary of the bearish channel. Cancellation of the option to reduce the pair GBP/USD in the current trading week from May 6 — 10, 2019 will be a strong growth and a breakdown of the 1.3435 area. This will indicate a breakdown of the upper limit of the model 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 1.2725.
Among the important news from the UK, which may have an impact on the Pound Dollar rate, it is worth mentioning: United Kingdom Manufacturing Production m/m, United Kingdom Gross Domestic Product (GDP) q/q.
GBP/USD Forecast and Analysis May 6 — 10, 2019 involves an attempt to test the resistance level near the 1.3145 area. Where can we expect to continue the fall of the pair with the goal below area 1.2375. 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 1.3435. In this case, we should expect the pair to continue to grow with a potential target above the level of 1.3750.
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