Currency pair Pound Dollar GBP/USD completes the trading week near the 1.2301 area. The pair continues to move within a rebound from the area between the signal lines and the downward channel. Moving averages indicate a bearish trend. At this, we should expect an attempt to develop a correction and test the resistance area near the level of 1.2405. Further, the rebound and the beginning of the fall of the Pound/Dollar quotes to the area below the level of 1.1605.
GBP/USD Forecast and Analysis October 7 — 11, 2019
In favor of the fall of the British Pound, a test of the downward resistance line on the relative strength index (RSI) will come out. The second signal will be a rebound from the upper boundary of the downward channel. Cancellation of the option to reduce the GBP/USD pair in the current trading week from October 7 to 11, 2019 will be a strong growth and a breakdown of the 1.2765 area. This will indicate a breakdown of the upper boundary of the channel and continued growth to the area above the level of 1.3065. A confirmation of the fall of GBP/USD will be a breakdown of the support area and closing below 1.1905.
Among the important news from the UK that may affect the Pound/Dollar exchange rate, it is worth highlighting: Speech by Bank of England (BoE) Governor Carney, United Kingdom Manufacturing Production m/m, United Kingdom Gross Domestic Product (GDP) m/m, United Kingdom Gross Domestic Product (GDP) 3m/3m.
GBP/USD Forecast and Analysis October 7 — 11, 2019 suggests an attempt to test the resistance level near the 1.2405 area. Where can we expect the pair to continue to fall with the target below 1.1605. An additional signal in favor of reducing will be a test of the downtrend line on the relative strength index (RSI). Cancellation of the fall option for the Pound/Dollar pair will be a strong growth and a breakdown of the level of 1.2765. In this case, we should expect continued growth of the pair with a potential target above the level of 1.3065.