Currency pair Pound/Dollar GBP/USD continues to move as part of the correction and the formation of the «Head and Shoulders» reversal pattern. At the time of the publication of the forecast, the pound to the US Dollar at Forex is 1.2641. Moving averages indicate a short-term bullish trend. Prices are testing the area between the signal lines, which indicates pressure from the buyers of the currency pair and the potential continued growth of the asset. At the moment, we should expect an attempt to develop the growth of the British Pound against the US Dollar and a test of the resistance area near the level of 1.2695. 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 July 16, 2020, is the area at the level of 1.1895.
GBP/USD Forecast Pound Dollar July 16, 2020
An additional signal in favor of reducing the currency pair will be a test of the trend line on the relative strength index (RSI). The second signal in favor of the fall will be the completion of the formation of the «Head and Shoulders» reversal pattern. The cancellation of the option to reduce the Pound/Dollar pair will be a strong growth with the closing of quotations above the level of 1.2865. This will indicate a breakdown of the resistance area and the continuation of the rise of the Pound/Dollar pair to the area above the level of 1.3085. Expect to accelerate the fall of the pair is with the breakdown of the support area and closing of the price below 1.2405.
Among the important news from the UK that may affect the rate of the GBP/USD pair, it is worth highlighting: United Kingdom Claimant Count Change, Statement by Bank of England (BoE) Governor Bailey Speech.
GBP/USD Forecast Pound Dollar July 16, 2020 implies 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 1.1895. An additional signal in favor of lowering 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 1.2865 area. This will indicate a continued rise of the pair with a potential target above the level of 1.3085.
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