Currency pair Pound/Dollar GBP/USD continues to move as part of the correction and the formation of the “Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the Pound/US Dollar rate on Forex is 1.2946. Moving averages indicate a short-term bullish trend. However, prices broke through the area between the signal lines downward, which indicates pressure from the sellers of the currency pair and the potential continuation of the fall of the instrument. At the moment, we should expect an attempt at a bullish correction of the British Pound against the US Dollar and a test of the resistance area near the level of 1.3095. Where again can we expect a rebound and a continuation of the fall in quotations of the British Pound against the US Dollar. The target of the downward movement of the currency pair, in the FOREX forecast for October 29, 2020, is the area at the level of 1.2525.
GBP/USD Forecast Pound Dollar October 29, 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 border of the “Head and Shoulders” reversal pattern. Cancellation of the option to drop the pair Pound/Dollar will be a strong growth with a breakdown of the resistance area below 1.3235. This will indicate a breakdown of the resistance area and continued growth of the Pound/Dollar pair to an area above the level of 1.3465. It is worth waiting for confirmation of the pair’s fall with the breakdown of the support area and closing prices below 1.2935.
GBP/USD Forecast Pound Dollar October 29, 2020 suggests an attempt to test the resistance area near the level of 1.3095. Then, the continuation of the fall with the target below 1.2525. 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 1.3235 area. This will indicate a continued rise in the pair with a potential target above the level of 1.3465.
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