Currency pair Pound Dollar GBP/USD completes the trading week near the area of 1.2454. The pair continues to move within a strong upward correction and a bearish channel. Moving averages indicate a bearish trend and prices are already testing the area between these lines. At this, we should expect an attempt to continue the development of the correction and test the resistance area near the level of 1.2535. Further, the rebound and the beginning of the fall of the Pound/Dollar quotes to the area below the level of 1.1685.
GBP/USD Forecast and Analysis September 16 — 20, 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 September 16 — 20, 2019 will be a strong growth and a breakdown of the 1.2645 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 1.2145.
Among the important news from the UK that could affect the Pound/Dollar exchange rate, it is worth highlighting: United Kingdom Retail Sales m/m, Bank of England (BoE) Interest Rate Decision.
GBP/USD Forecast and Analysis September 16 — 20, 2019 suggests an attempt to test the resistance level near the 1.2535 area. Where can we expect the pair to continue to fall with the target below 1.1685. 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 pair Pound/Dollar will be a strong growth and the breakdown level of 1.2645. In this case, we should expect continued growth of the pair with a potential target above the level of 1.3065.