Currency pair Pound/Dollar GBP/USD continues to move as part of the correction and the formation of the downward «Wolfe Wave» pattern. There is also potential here for the formation of a Double Top pattern. At the time of the publication of the forecast, the rate of the Pound to the US Dollar on Forex is 1.3116. 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. 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 1.3165. 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 framework of the Forex forecast for August 6, 2020, is the area at the level of 1.2695, and the targets for the development of the «Wolfe Wave» model are even lower at the level of 1.1855.
GBP/USD Forecast Pound Dollar August 6, 2020
An additional signal in favor of the fall of the currency pair will be a test of the trend line on the relative strength index (RSI). The second signal in favor of the decline will be the price return below the upper boundary of the descending «Wolfe Wave» pattern. 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 1.3295. This will indicate a breakdown of the resistance area and continued growth of the Pound/Dollar pair to an area above the level of 1.3785. The pair should be expected to accelerate the fall with the breakdown of the support area and the closing of the price below 1.2745, which will indicate a breakdown of the lower boundary of the ascending channel and the beginning of the «Double Top» pattern.
Among the important news from the UK that may have an impact on the GBP/USD pair, it is worth highlighting: Bank of England (BoE) Governor Bailey Speech, Bank of England (BoE) interest rate decision Interest Rate Decision.
GBP/USD Forecast Pound Dollar August 6, 2020 suggests an attempt to test the resistance area near the level of 1.2695. Then, the continuation of the fall with the target below the level of 1.1855. 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 growth and a breakdown of the 1.3295 area. This will indicate a continued rise in the pair with a potential target above the level of 1.3785.
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