Currency pair Pound Dollar GBP/USD completes the trading week near the 1.2961 area. The pair continues to move within the fall and ascending channel. Moving averages indicate a bullish trend. Prices are again testing the area between the signal lines, 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 grow and test the resistance area near the level of 1.3195. Further, the rebound and the beginning of the fall in the Pound/Dollar quotes to the area below the level of 1.2065.
GBP/USD Forecast and Analysis November 2 — 6, 2020
An additional signal in favor of the fall of the British Pound will be a test of the trend resistance line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel. Cancellation of the option to drop the GBP/USD pair in the current trading week on November 2 — 6, 2020 will be a strong growth and a breakdown of the 1.3565 area. This will indicate a breakdown of an important resistance area and continued growth to an area above the level of 1.4065. Confirmation of the fall in the GBP/USD currency will be a breakdown of the support area and closing prices below 1.2585, which will indicate a breakdown of the lower border of the ascending channel.
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 2 — 6, 2020 implies an attempt to test the resistance level near the 1.3195 area. Where can we expect the pair to continue falling with a target below the 1.2065 area. 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 a breakdown of the level of 1.3565. In this case, we should expect the pair to continue to grow with a potential target above the level of 1.4065.
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