Currency pair Pound Dollar GBP/USD completes the trading week near the area of 1.2896. The pair continues to move in strong growth and a bearish channel. Moving averages indicate a bearish trend. At this, we should expect an attempt to develop a decline and test the support area near the level of 1.2625. Further, the rebound and the beginning of the growth of the Pound/Dollar quotes to the area above the level of 1.3535.
In favor of the growth of the British Pound, a test of the broken trend line on the relative strength index (RSI) will come out. The second signal will be a rebound from the lower boundary of the ascending channel.
GBP/USD Forecast and Analysis October 21 — 25, 2019
Cancellation of the growth option for the GBP/USD pair in the current trading week October 21 — 25, 2019 will be a fall and a breakdown of the 1.2340 area. This will indicate a breakdown of the lower boundary of the channel and continued decline to the area below the level of 1.1885. A confirmation of the growth of GBP/USD will be a breakdown of the upper border of the downward channel and closing above 1.3105.
Among the important news from the UK that may affect the Pound/Dollar exchange rate, it is worth highlighting: United Kingdom Retail Sales m/m, United Kingdom Claimant Count Change, Statement by Bank of England (BoE) Governor Carney Speech.
GBP/USD Forecast and Analysis October 21 — 25, 2019 suggests an attempt to test the support level near the 1.2625 area. Where can we expect continued growth of the pair with a target below the area of 1.3535. An additional signal in favor of the rise will be a test of the downtrend line on the relative strength index (RSI). The cancellation of the growth option for the Pound / Dollar pair will be a fall and a breakdown of the level of 1.2340. In this case, we should expect the pair to continue to decline with a potential target below the level of 1.1885.