Currency pair Pound/Dollar GBP/USD continues to move as part of the correction and the formation of a large reversal pattern «Head and Shoulders». A bearish «Wolfe Wave» pattern is also forming. At the time of the publication of the forecast, the rate of the Pound to the US Dollar on Forex is 1.2741. Moving averages indicate a short-term bullish trend. Prices bounced off the area between the signal lines, which indicates pressure from buyers of the currency pair and a potential continuation of the asset’s growth. At the moment, we should expect an attempt to develop the growth of the British Pound against the US Dollar and test the resistance area near the level of 1.2775. Where again can we expect a rebound and a continuation of the fall in quotations of the British Pound against the US Dollar. The target of the downward movement of the currency pair, in the Forex forecast for July 24, 2020, is the area at the level of 1.2475.
GBP/USD Forecast Pound Dollar July 24, 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 a rebound from the upper boundary of the «Wolfe Wave» model. Cancellation of the option to reduce the pair Pound/Dollar will be a strong increase with the closing of quotations above the level of 1.2975. This will indicate a breakdown of the resistance area and a continued rise in the Pound/Dollar pair to an area above the level of 1.3235. The pair is expected to accelerate falling with the breakdown of the support area and closing of the price below 1.2635.
Among the important news from the UK that may affect the rate of the GBP/USD pair, it is worth highlighting: United Kingdom Retail Sales m/m.
GBP/USD Forecast Pound Dollar July 24, 2020 suggests an attempt to test the resistance area near the level of 1.2775. Then, the continuation of the fall with the target below 1.2475. 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 1.2975 area. This will indicate a continued rise in the pair with a potential target above the level of 1.3235.
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