The currency pair Pound/Dollar GBP/USD completes the trading week as part of the development of the correction and the formation of the bearish Wolfe Wave model. Moving averages indicate a bullish trend. Prices have broken through the area between the signal lines up, which indicates pressure from buyers and a potential continuation of the growth 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 1.2955. Further, a rebound down and the continuation of the fall of the Pound Dollar quotes to the area below the level of 1.1375.
GBP/USD Weekly Forecast August 7 — 11, 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 bearish channel. Cancellation of the GBP/USD pair fall option in the current trading week August 7 — 11, 2023 will be a strong growth in quotes and a breakdown of the 1.3395 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.3705. The fall of the GBP/USD currency will be confirmed by a breakdown of the support area and closing of the price below the level of 1.2525, which will indicate a breakdown of the lower reversal pattern “Head and Shoulders” and the beginning of the pattern with targets below.
GBP/USD Weekly Forecast August 7 — 11, 2023 suggests an attempt to rise and test the resistance level near the area of 1.2955. Where should we expect the currency pair to continue falling with the target below the area of 1.1375. 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 1.3395. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.3705.
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