Currency pair Pound Dollar GBP/USD completes the trading week as part of the development of a bullish correction near the area of 1.2254. The pair continues to move as part of the formation of the bearish “Wolfe Wave” pattern, the target of the pattern is the level of 1.1755. Moving averages indicate a bearish trend. Prices have broken through the area between the signal lines up, which indicates pressure from buyers and a potential continuation of the growth of the British Pound against the US Dollar already from current levels. At this point, we should expect an attempt to develop a rise and test the resistance area near the level of 1.2465. Further, a rebound down and the continuation of the fall of the Pound Dollar quotes to the area below the level of 1.0765.
GBP/USD Forecast February 6 — 10, 2023
An additional signal in favor of the decline of the British Pound will be a test of the 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 fall option for the GBP/USD pair in the current trading week February 6 — 10, 2023 will be a strong growth in quotes and a breakdown of the 1.3005 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.3385. The fall of the GBP/USD currency will be confirmed by a breakdown of the support area and closing of the price below the level of 1.2255, which will indicate a breakdown of the lower border of the downward Wolfe Wave model.
Among the important news from the UK that may have an impact on the Pound/Dollar rate, it is worth highlighting: United Kingdom Manufacturing Production m/m, United Kingdom Gross domestic product (GDP) q/q Domestic Product (GDP) q/q.
GBP/USD Forecast February 6 — 10, 2023 suggests an attempt to rise and test the resistance level near the area of 1.2465. Where should we expect the currency pair to continue falling with the target below the area of 1.0765. An additional signal in favor of the decline will be a test of the trend 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 1.3005. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.3385.
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