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 1.2489. Moving averages indicate the presence of a short-term lateral trend. Prices pierced the area between the signal lines up, which indicates pressure from buyers of the currency pair. At the moment, we should expect an attempt to develop a depreciation of the British Pound against the US Dollar and a test of the support area near the level of 1.2350. Where again we should expect a rebound and continued growth of quotations of the British Pound currency pair against the US Dollar. The target of the upward movement of the currency pair, in the framework of the FOREX forecast for July 7, 2020, is the area at the level of 1.2825.
GBP/USD Forecast Pound Dollar July 7, 2020
An additional signal in favor of the rise of the currency pair will be a test of the trend line on the relative strength index (RSI). The second signal in favor of growth will be the rebound completion of the formation of the inverted model of «Head and Shoulders». The cancellation of the growth option for the Pound/Dollar pair will be a fall with the closing of quotations below 1.2205. This will indicate a breakdown of the support area and the continuation of the fall of the Pound/Dollar pair to the area below the level of 1.1875. Expect to accelerate the growth of the pair is with the breakdown of the resistance area and the closing of the price above 1.2605.
GBP/USD Forecast Pound Dollar July 7, 2020 implies an attempt to test the support area near the level of 1.2350. Then, continued growth with the target above 1.2825. An additional signal in favor of the rise of the British Pound will be a test of the support line on the relative strength index (RSI). Cancellation of the growth option will be a fall and a breakdown of the 1.2205 area. This will indicate a continued decline in the pair with a potential target below the level of 1.1875.
Looking for the Best Forex Broker? We trade at RoboForex. You can receive a rebates from each trade when registering using our partner link