Currency pair Pound/Dollar GBP/USD continues to move as part of the fall and the beginning of the development 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 1.2380. Moving averages indicate a short-term bullish trend. Prices pierced the area between the signal lines down, which indicates pressure from the sellers of the currency pair. At the moment, we should expect an attempt to develop the correction of the British Pound exchange rate and test the resistance area near the level of 1.2415. 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 7, 2020, is the area at the level of 1.2085.
GBP/USD Forecast Pound Dollar May 7, 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 falling will be a rebound from the resistance area. Cancellation of the option to reduce the pair Pound/Dollar will be a strong growth with the closing of quotations above the level of 1.2515. 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 1.2855. Expect to accelerate the fall of the pair is with the breakdown of the support area and closing below 1.2305, which will indicate a breakdown of the support area.
Among the important news from the UK that may affect the rate of the GBP/USD pair, it is worth highlighting: Bank of England (BoE) Interest Rate Decision.
GBP/USD Forecast Pound Dollar May 7, 2020 implies an attempt to test the resistance area near the level of 1.2415. Then, the continuation of the fall with the target below the level of 1.2085. 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 1.2515 area. This will indicate a continued rise of the pair with a potential target below 1.2855.
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