Currency pair Pound/Dollar GBP/USD continues to move as part of the correction and the formation of the “Triangle” pattern, sellers fail to break through the lower border of the model. At the time of the publication of the forecast, the rate of the Pound to the US Dollar on Forex is 1.2909. Moving averages indicate a short-term bullish trend. Prices are testing the area between the signal lines, which indicates pressure from buyers of the currency pair and a potential continuation of the asset’s growth. At the moment, we should expect an attempt to correct the British Pound against the US Dollar and test the resistance area near the level of 1.2935. Where again should we expect a rebound and the beginning of a 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 9, 2020, is the area at the level of 1.2475.
GBP/USD Forecast Pound Dollar October 9, 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 a decline will be a rebound from the lower border of the ascending channel; now we are seeing a classic return to this channel. As well as a test of the upper boundary of the “Triangle” model. Cancellation of the option to drop the Pound/Dollar pair will be a strong growth of the pair with quotations closing above 1.3155. This will indicate a breakdown of the resistance area and continued growth of the Pound/Dollar pair to the area above 1.3355. Expect confirmation of the pair’s fall with a breakdown of the support area and closing of the price below the level of 1.2775, such a movement will indicate a breakdown of the lower border of the “Triangle” model and the beginning of the development of this pattern.
Among the important news from the UK that may affect the GBP/USD pair, it is worth highlighting: United Kingdom Gross Domestic Product (GDP) 3m/3m, United Kingdom Gross Domestic Product (GDP) m/m, United Kingdom Manufacturing Production m/m.
GBP/USD Forecast Pound Dollar October 9, 2020 suggests an attempt to test the resistance area near the level of 1.2935. Then, the continuation of the fall with the target below 1.2475. 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 price increase and a breakdown of the 1.3155 area. This will indicate a continued rise in the pair with a potential target above the level of 1.3355.
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