Currency pair Pound/Dollar GBP/USD continues to move as part of the growth and the formation of an inverted ”Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the rate of the Pound to the US Dollar on Forex is 1.3806. Moving averages indicate a short-term bearish trend. Prices broke through the area between the signal lines upward, which indicates pressure from the sellers of the currency pair and a potential continuation of the fall of the instrument. At the moment, we should expect an attempt to raise the price of the British Pound against the US Dollar and test the resistance area near the level of 1.3835. 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 fall of the pair, in the framework of the Forex forecast for October 22, 2021, is the area at the level of 1.3545.
GBP/USD Forecast Pound Dollar October 22, 2021
An additional signal in favor of reducing the currency pair will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of a decline will be a rebound from the resistance area. Cancellation of the option to drop the Pound/Dollar pair will be a strong growth with a breakdown of the resistance area with the price fixing above the level of 1.3955. This will indicate a breakdown of the resistance area and a continued rise in the Pound/Dollar pair to an area above the level of 1.4245. It is worth waiting for confirmation of the pair’s fall with the breakdown of the support area and closing the price below 1.3705.
Among the important news from the UK that may have an impact on the rate of the GBP/USD pair, it is worth highlighting: United Kingdom Retail Sales m/m.
GBP/USD Forecast Pound Dollar October 22, 2021 implies an attempt to test the resistance area near the level of 1.3835. Then, the continuation of the fall with the target below the level of 1.3545. An additional signal in favor of a decline in 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 1.3955 area. This will indicate a continued rise in the pair with a potential target above the level of 1.4245.
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