Currency pair Pound/Dollar GBP/USD continues to move as part of the fall and the beginning of the development of the bearish “Wolfe Wave” pattern. At the time of the publication of the forecast, the rate of the Pound to the US Dollar on Forex is 1.4080. Moving averages indicate a short-term bullish trend. Prices push up from the area between the signal lines, 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 grow the British Pound against the US Dollar and test the resistance area near the level of 1.4135. Where can we expect a rebound again and a 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 May 18, 2021, is the area at the level of 1.3675.
GBP/USD Forecast Pound Dollar May 18, 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 growth will be a rebound from the upper boundary of the “Wolfe Wave” model. 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 1.4265. This will indicate a breakdown of the resistance area and continued growth of the Pound/Dollar pair to an area above the level of 1.4545. 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 1.3925, which will indicate the completion of the formation of the “Double Top” pattern.
Among the important news from the UK, which may have an impact on the GBP/USD pair, it is worth highlighting: United Kingdom Claimant Count Change.
GBP/USD Forecast Pound Dollar May 18, 2021 suggests an attempt to test the resistance area near the level of 1.4135. Then, the continuation of the fall with the target below 1.3675. 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 1.4265 area. This will indicate a continued rise in the pair with a potential target above the level of 1.4545.
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