Currency pair Pound/Dollar GBP/USD continues to move as part of the development of the correction and the formation of the “Wedge” reversal pattern. At the time of the publication of the forecast, the Pound to the US Dollar exchange rate on Forex is 1.2468. Moving averages indicate the presence of a short-term bearish trend. Prices are again testing the area between the signal lines, which indicates pressure from sellers of the currency pair and a potential continuation of the fall of the instrument. At the moment, we should expect an attempt to develop a bullish correction of the British Pound against the US Dollar and a test of the resistance area near the level of 1.2580. Where can we expect a rebound down again and a continuation of the fall in the quotes of the British Pound against the US Dollar. The purpose of the rise of the pair, as part of the Forex forecast for May 19, 2023, is the area at the level of 1.1995.
GBP/USD Forecast for May 19, 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 index (RSI). The second signal in favor of the decline will be a rebound from the lower boundary of the bullish channel, which was broken down by the sellers. Cancellation of the fall option for the Pound/Dollar pair will be a strong growth and a breakdown of the resistance area with the price fixing above the level of 1.2785. This will indicate a breakdown of the resistance area and continued growth of the Pound/Dollar pair to the area at the level of 1.3095. It is worth waiting for confirmation of the fall of the pair with a breakdown of the support area and closing of the price under the level of 1.2345, which will indicate a breakdown of the lower border of the “Head and Shoulders” reversal pattern and the beginning of the pattern with targets below.
GBP/USD Forecast for May 19, 2023 suggests an attempt to test the resistance area near the level of 1.2580. Then, the continuation of the fall with the target near the level of 1.1995. 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). Cancellation of the fall option will be a strong growth of the British Pound against the US Dollar and a breakdown of the 1.2785 area. This will indicate a continued rise in the Forex pair with a potential target above the level of 1.3095.
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