Currency pair Pound/Dollar GBP/USD continues to move as part of the correction and the formation of an inverted “Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the Pound to the US Dollar exchange rate on Forex is 1.3630. Moving averages indicate the presence of a short-term bullish trend. Prices again left the area between the signal lines, which indicates pressure from buyers of the currency pair and a potential continuation of the growth of the instrument. At the moment, we should expect an attempt to raise the price of the British Pound against the US Dollar and test the resistance area near the level of 1.3705. 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 target for the pair’s decline, as part of the Forex forecast for January 20, 2022, is the area at the level of 1.3345.
GBP/USD Forecast Pound Dollar January 20, 2022
An additional signal in favor of a decrease in the currency pair will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of the fall will be a rebound from the upper border of the reversal pattern inverted “Head and Shoulders”. Cancellation of the fall option for the Pound/Dollar pair will be a strong growth of the pair and a breakdown of the resistance area with the price fixing above the level of 1.3875. This will indicate a breakdown of the upper border of the descending channel and the continued growth of the Pound/Dollar pair to the area at the level of 1.4175, as well as the cancellation of the formation of the “Head and Shoulders” reversal pattern. It is worth waiting for confirmation of the fall of the pair with a breakdown of the support area and closing of the price below the level of 1.3525, which will indicate a breakdown of the lower border of the bullish correction channel, and there will also be a potential for the formation of a “Double bottom” reversal pattern.
GBP/USD Forecast Pound Dollar January 20, 2022 suggests an attempt to test the resistance area near the level of 1.3705. Then, the continuation of the fall with the target below the level of 1.3345. 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 pound against the dollar and a breakdown of the 1.3875 area. This will indicate a continuation of the rise of the pair with a potential target above the level of 1.4175.
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