Currency pair Pound Dollar GBP/USD ends the trading week near the 1.3794 area. The pair continues to move within the correction and the downward channel. Prices have broken the area between the signal lines upward, which indicates pressure from buyers and a potential continuation of the rise in the British Pound against the US Dollar at current levels. At this point, we should expect an attempt to reduce and test the support area near the level of 1.3455. Further, an upward rebound and the beginning of the rise in the Pound/Dollar quotes to the area above the level of 1.4265.
GBP/USD Forecast and Analysis November 1 — 5, 2021
An additional signal in favor of a rise in the British Pound will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the growth option for the GBP/USD pair in the current trading week November 1 — 5, 2021 will be a fall and a breakdown of the 1.3205 area. This will indicate a breakdown of the support area and a continued fall to the area below 1.2575. Confirmation of the rise in the GBP/USD currency will be the breakdown of the resistance area and the closing of the price above the level of 1.3995, which will indicate the completion of the formation of the inverted “Head and Shoulders” reversal pattern.
Among the important news from the UK that may have an impact on the Pound/Dollar rate, it is worth highlighting: Bank of England (BoE) Interest Rate Decision, Statement by Bank of England (BoE) Governor Bailey Speech.
GBP/USD Forecast and Analysis November 1 — 5, 2021 suggests an attempt to rise and test the support level near the 1.3455 area. Where can we expect the continued growth of the currency pair with a target above the area of 1.4265. An additional signal in favor of the rise will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option for the Pound/Dollar pair will be a fall and a breakdown of the level of 1.3205. In this case, we should expect the pair to continue to decline with a potential target below the level of 1.2575.
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