Currency pair Pound/Dollar GBP/USD continues to move as part of the development of the correction and the downward channel. The potential for the formation of the “Double top” reversal pattern remains, with the breakdown of the level of 1.0345 we should expect the beginning of this pattern to be worked out with targets below. At the time of the publication of the forecast, the Pound to the US Dollar exchange rate on Forex is 1.1233. Moving averages indicate the presence of a short-term bearish trend. Prices are again testing the area between the signal lines, which indicates pressure from sellers of the currency pair and a potential continuation of the fall of the instrument. At the moment, we should expect an attempt to develop a bullish price correction of the British Pound against the US Dollar and a test of the resistance area near the level of 1.1365. Where can we expect a rebound down again and a continuation of the fall in the quotes of the British Pound against the US Dollar. The target of the pair’s decline, as part of the Forex forecast for October 20, 2022, is the area at the level of 1.0415.
GBP/USD Forecast Pound Dollar October 20, 2022
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 the decline will be a rebound from the upper border of the descending channel. Cancellation of the fall option for the Pound/Dollar pair will be a strong growth and a breakdown of the resistance area with the price fixing above the level of 1.1605. This will indicate a breakdown of the upper border of the descending channel and the continued rise of the Pound/Dollar pair to the area at the level of 1.1845. It is worth waiting for confirmation of the fall of the pair with the breakdown of the support area and the closing of the price below the level of 1.1045, which will indicate the breakdown of the lower border of the bullish correction channel.
GBP/USD Forecast Pound Dollar October 20, 2022 suggests an attempt to test the resistance area near the level of 1.1365. Then, the continuation of the fall with the target near the level of 1.0415. An additional signal in favor of the decline of the British Pound will be a test of the support line on the relative strength index (RSI). Cancellation of the fall option will be a strong growth of the Pound against the US Dollar and a breakdown of the 1.1605 area.
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