Currency pair Pound/Dollar GBP/USD continues to move as part of the fall and the beginning of the development of the “Wedge” reversal pattern. At the time of the publication of the forecast, the Pound/Dollar rate on Forex is 1.3677. Moving averages indicate a short-term sideways trend. Prices went down from the area between the signal lines, which indicates pressure from the sellers of the currency pair and a potential continuation of the fall of the instrument. At the moment, we should expect an attempt to grow the British Pound against the US Dollar and test the resistance area near the level of 1.3685. Where again can we expect a rebound and a continuation of the 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 February 4, 2021, is the area at the level of 1.3475.
GBP/USD Forecast Pound Dollar February 4, 2021
An additional signal in favor of the fall of the currency pair will be a test of the downward trend line on the relative strength index (RSI). The second signal in favor of a decline will be a rebound from the lower boundary of the “Wedge” pattern. Cancellation of the option to drop the pair Pound/Dollar will be a strong growth with a breakdown of the resistance area above 1.3805. This will indicate a breakdown of the resistance area and continued growth of the Pound/Dollar pair to an area above the level of 1.4255. It is worth waiting for confirmation of the pair’s fall with the breakdown of the support area and closing of prices below the level of 1.3585, as we see, buyers manage to keep this area from breaking down.
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) Interest Rate Decision, Bank of England (BoE) Governor Bailey Speech.
GBP/USD Forecast Pound Dollar February 4, 2021 suggests an attempt to test the resistance area near the level of 1.3685. Then, the continuation of the fall with the target below 1.3475. An additional signal in favor of the fall of the British Pound will be a test of the resistance line on the relative strength index (RSI). Cancellation of the reduction option will be a strong growth and a breakdown of the 1.3805 area. This will indicate a continued rise in the pair with a potential target above the level of 1.4255.
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