Currency pair Pound/Dollar GBP/USD continues to move as part of the correction and formation of the «Head and Shoulders» model. At the time of the publication of the forecast, the pound to the US Dollar at FOREX is 1.3026. Moving averages indicate a short-term bullish trend. At the moment, we should expect an attempt to increase the British Pound and a test of the resistance area near the level of 1.3095. Where again we should expect a rebound and a continued fall in the quotes of the British Pound currency pair against the US Dollar. The purpose of the downward movement of the currency pair, in the framework of the Forex forecast for January 31, 2020, is the area at the level of 1.2845.
GBP/USD Forecast Pound Dollar January 31, 2020
An additional signal in favor of the fall of the currency pair will be a test of a downward trend line on the relative strength index (RSI). The second signal in favor of lowering will be the completion of the formation of the «Head and Shoulders» reversal pattern. Cancellation of the fall option for the Pound/Dollar pair will be a strong growth with the closing of quotations above the level of 1.3185. This will indicate a breakdown of the resistance area and continued growth of the Pound/Dollar pair to the area above the level of 1.3455. Expect to accelerate the fall of the pair is with the breakdown of the support area and closing below 1.2935, which will indicate the price goes beyond the rising channel.
GBP/USD Forecast Pound Dollar January 31, 2020 implies an attempt to test the resistance area near the level of 1.3095. Then, the continuation of the fall with the target below the level of 1.2845. An additional signal in favor of the fall of the British Pound will be a test of the resistance area on the relative strength index (RSI). Cancellation of the fall option will be a strong growth and a breakdown of the 1.3185 area. This will indicate a continued rise of the pair with a potential target above the level of 1.3455.
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