Currency pair Pound/Dollar GBP/USD continues to move within the framework of the development of the correction and has left the limits of the bullish channel. At the time of publication of the forecast, the Pound to US Dollar rate on Forex is 1.2504. Moving averages indicate the presence of a short-term bearish trend. Prices broke the area between the signal lines down, which indicates pressure from the sellers of the currency pair and a potential continuation of the instrument’s decline. At the moment, we should expect a demand for the development of a bullish correction of the exchange rate of the British Pound against the American Dollar and a test of the resistance area near the level of 1.2535. Why should we again expect a downward bounce and a continuation of the drop in the quotes of the currency pair of the British Pound against the US Dollar. As part of the Forex forecast for May 16, 2023, the area at the level of 1.2275 is the target for the pair to rise.
GBP/USD Forecast for May 16, 2023
An additional signal in favor of the fall of the currency pair will be a test of the resistance line on the relative strength indicator (RSI). The second signal in favor of the decrease will be a rebound from the upper border of the bullish channel. A strong growth and a breakdown of the resistance area with a fixation of the price above the level of 1.2605 will cancel the option of a fall in the Pound-Dollar pair. This will indicate a breakdown of the resistance area and the continuation of the growth of the Pound-Dollar pair in the area at the level of 1.2825. It is worth waiting for confirmation of the fall of the pair with a breakdown of the support area and closing the price below the level of 1.2435.
Among the important news from Great Britain, which may have an impact on the GBP/USD pair, it is worth highlighting: United Kingdom Claimant Count Change.
GBP/USD Forecast for May 16, 2023 suggests a demand for a test of the resistance area near the level of 1.2535. Then, the continuation of the fall with the goal near the level of 1.2275. A test of the resistance line on the relative strength indicator (RSI) will be an additional signal in favor of the decline of the British Pound. A strong growth of the British Pound against the US Dollar and a breakdown of the area of 1.2605 will cancel the fall option. This will indicate the continuation of the rise on the Forex pair with a potential target above the level of 1.2825.
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