Currency pair Pound/Dollar GBP/USD continues to move as part of a strong upward correction and the formation of the downward model «Wolfe Wave». At the time of the publication of the forecast, the pound to the US Dollar at FOREX is 1.2339. Moving averages indicate a short-term bearish trend. Prices pierced the area between the signal lines up, which indicates pressure from buyers of the currency pair and the potential continuation of growth. At the moment, we should expect an attempt to develop a correction of the British Pound against the US Dollar and a test of the resistance area near the level of 1.2375. Where again we should expect a rebound and a continued fall in quotations 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 May 27, 2020, is the area at the level of 1.2075.
GBP/USD Forecast Pound Dollar May 27, 2020
An additional signal in favor of the fall of the currency pair will be a test of the trend line on the relative strength index (RSI). The second signal in favor of the decline will be a rebound from the upper boundary of the «Wolfe Wave». Cancellation of the option to reduce the pair Dollar will be a strong growth with the closing of quotations above the level of 1.2495. 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 1.2685. Expect to accelerate the fall of the pair is with the breakdown of the support area and closing below 1.2225.
GBP/USD Forecast Pound Dollar May 27, 2020 implies an attempt to test the resistance area near the level of 1.2375. Then, the continuation of the fall with the target below the level of 1.2075. 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 reduction option will be a strong growth and a breakdown of the 1.2495 area. This will indicate a continued rise in the pair with a potential target below 1.2685.
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