Currency pair Pound Dollar GBP/USD ends the trading week near the 1.3957 area. The pair continues to move within the framework of growth and the beginning of the development of the bearish ”Wolfe Wave” pattern. Moving averages indicate a bullish trend. Prices are 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 1.4165. Further, the rebound and the beginning of the fall in the Pound/Dollar quotes to the area below the level of 1.2255.
GBP/USD Forecast and Weekly Analysis May 10 — 14, 2021
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 upper border of the bearish ”Wolfe Wave” pattern. Cancellation of the option to drop the GBP/USD pair in the current trading week May 10 — 14, 2021 will be a strong growth and a breakdown of the 1.4565 area. This will indicate a breakdown of an important resistance area and a continued rise to the area above the level of 1.5205. Confirmation of the fall in the GBP/USD currency will be the breakdown of the support area and the closing of the price below 1.3455.
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) Governor Bailey Speech, United Kingdom Manufacturing Production m/m, Bank of England (BoE) Governor Bailey Speech, United Kingdom Gross Domestic Product (GDP) q/q.
GBP/USD Forecast and Weekly Analysis May 10 — 14, 2021 suggests an attempt to rise and test the resistance level near the 1.4165 area. Where can we expect the currency pair to continue falling with a target below the 1.2255 area. An additional signal in favor of a decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to drop the pair Pound/Dollar will be a strong growth and a breakdown of the level of 1.4565. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.5205.
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