Currency pair Pound/Dollar GBP/USD continues to move as part of the correction and the formation of the «Head and Shoulders» reversal pattern, in case of a breakdown of the support level and fixing prices below 1.2945, we should expect an aggressive fall in the currency pair and the beginning of this pattern. The formation of the «Wolfe Wave» descending pattern also remains relevant. At the time of the publication of the forecast, the Pound to US Dollar rate on FOREX is 1.3051. Moving averages indicate a short-term bullish trend. Prices bounced off the area between the signal lines, which indicates pressure from buyers of the currency pair and a potential continuation of the asset’s growth.
GBP/USD Forecast Pound Dollar August 14, 2020
At the moment, we should expect an attempt to continue the growth of the British Pound against the US Dollar and test the resistance area near the level of 1.3130. Where again should we expect a rebound and the beginning of a fall in quotations of the British Pound against the US Dollar. The target of the downward movement of the currency pair, in the FOREX forecast for August 14, 2020, is the area at the level of 1.2595.
An additional signal in favor of the fall of the currency pair will be a test of the broken trend line on the relative strength index (RSI). The second signal in favor of a decline will be the completion of the reversal pattern formation. Cancellation of the option to drop the pair Pound/Dollar will be a strong growth of the pair with quotations closing above the level of 1.3265. This will indicate a breakdown of the resistance area and continued growth of the Pound/Dollar pair to an area above the level of 1.3635. The pair is expected to accelerate falling with the breakdown of the support area and closing of the price below 1.2905.
GBP/USD Forecast Pound Dollar August 14, 2020 suggests an attempt to test the resistance area near the level of 1.3130. Then, the continuation of the fall with the target below 1.2595. An additional signal in favor of a decline in 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 price increase and a breakdown of the 1.3265 area. This will indicate a continued rise in the pair with a potential target above the level of 1.3635.
Looking for the Best Forex Broker? We trade at RoboForex. You can receive a rebates from each trade when registering using our partner link