Currency pair Pound/Dollar GBP/USD continues to move as part of the correction and the “Wedge” reversal pattern. At the time of the publication of the forecast, the rate of the Pound to the US Dollar on Forex is 1.3848. Moving averages indicate a short-term bearish trend. Prices broke up 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 at a bullish correction of the British Pound against the US Dollar and a test of the resistance area near the level of 1.3885. Where can we expect a rebound again and the continuation of the fall in quotations of the British Pound against the US Dollar. The target of the pair’s downward movement, in the Forex forecast for July 16, 2021, is the area at the level of 1.3625.
GBP/USD Forecast Pound Dollar July 16, 2021
An additional signal in favor of the fall of the currency pair will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of a decline will be a rebound from the upper border of the “Wedge” reversal pattern. Cancellation of the option to drop the Pound/Dollar pair will be a strong growth with a breakdown of the resistance area with prices fixing above the level of 1.3985. This will indicate a breakdown of the resistance area and continued growth of the Pound/Dollar pair to an area above the level of 1.4265. 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 1.3745, which will indicate a breakdown of the lower boundary of the “Wedge” model.
GBP/USD Forecast Pound Dollar July 16, 2021 suggests an attempt to test the resistance area near the level of 1.3885. Then, the continuation of the fall with the target below the level of 1.3625. 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 fall option will be a strong growth and a breakdown of the 1.3985 area. This will indicate a continued rise in the pair with a potential target above the level of 1.4265.
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