Currency pair Pound Dollar GBP/USD completes the trading week as part of the development of a correction near the area of 1.1970. The pair continues to move within the formation of the double top reversal pattern. Moving averages indicate a bearish trend. Prices have broken through the area between the signal lines down, which indicates pressure from sellers and a potential continuation of the fall of the British Pound against the US Dollar already from current levels. At this point, we should expect an attempt to develop a rise and test the resistance area near the level of 1.2265. Further, a rebound down and the continuation of the fall of the Pound/Dollar quotes to the area below the level of 1.0675.
GBP/USD Forecast Weekly Forecast March 6 — 10, 2023
An additional signal in favor of the decline of the British Pound will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the descending channel. Cancellation of the option of falling the GBP/USD pair in the current trading week March 6 — 10, 2023 will be a strong growth in quotes and a breakdown of the 1.2505 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.3045. The fall of the currency GBP/USD will be confirmed by a breakdown of the support area and closing of the price below the level of 1.1655, which will indicate a breakdown of the lower border of the “Double Top” reversal pattern and the beginning of the pattern with targets at the bottom.
Among the important news from the UK, which may have an impact on the Pound/Dollar rate, it is worth highlighting: United Kingdom Manufacturing Production m/m.
GBP/USD Forecast Weekly Forecast March 6 — 10, 2023 suggests an attempt to rise and test the resistance level near the area of 1.2265. Where should we expect the currency pair to continue falling with the target below the area of 1.0675. An additional signal in favor of the decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall option for the Pound/Dollar pair will be a strong growth and a breakdown of the level of 1.2505. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.3045.
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