Currency pair Pound/Dollar GBP/USD continues to move as part of the correction and the downward channel. There is also a potential for the formation of the ”Wedge” model. At the time of the publication of the forecast, the rate of the Pound to the US Dollar on Forex is 1.3534. Moving averages indicate a short-term bullish trend. Prices have broken the area between the signal lines upwards, 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 correct the price of the British Pound against the US Dollar and test the resistance area near the level of 1.3565. Where can we expect a rebound down again and a continuation of the fall in quotations of the British Pound against the US Dollar. The target of reducing the pair, in the framework of the Forex forecast for January 7, 2022, is the area at the level of 1.3250.
GBP/USD Forecast Pound Dollar January 7, 2022
An additional signal in favor of reducing 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 descending channel. Cancellation of the option to drop the Pound/Dollar pair will be a strong growth and a breakdown of the resistance area with the price fixing above the level of 1.3675. This will indicate a breakdown of the upper border of the downward channel and continued growth of the Pound/Dollar pair to the area at the level of 1.3875. It is worth waiting for confirmation of the pair’s fall with the breakdown of the support area and closing of the price below the level of 1.3395, which will indicate a breakdown of the lower border of the upward correction channel.
GBP/USD Forecast Pound Dollar January 7, 2022 suggests an attempt to test the resistance area near the level of 1.3565. Then, the continuation of the fall with the target below 1.3250. 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 growth and a breakdown of the 1.3675 area. This will indicate a continued rise in the pair with a potential target above the level of 1.3875.
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