Currency pair Pound Dollar GBP/USD completes the trading week near the area of 1.2138. The pair continues to move within the framework of the fall and the descending channel. 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 at current levels. At this point, we should expect an attempt to develop a bullish correction and test the resistance area near the level of 1.2275. Further, a rebound down and the continuation of the fall of the Pound Dollar quotes to the area below the level of 1.1205.
GBP/USD Weekly Forecast August 8 — 12, 2022
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). The second signal will be a rebound from the upper border of the descending channel. Cancellation of the option to reduce the GBP/USD pair in the current trading week August 8 — 12, 2022 will be a strong growth and a breakdown of the 1.2765 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.2995. A confirmation of the fall of the GBP/USD currency will be a breakdown of the support area and closing of the price below the level of 1.1735, while only price bounces upwards from this area.
Among the important news from the UK that may have an impact on the Pound/Dollar rate, it is worth highlighting: United Kingdom Manufacturing Production m/m, United Kingdom Gross Domestic Product (GDP) m/m.
GBP/USD Weekly Forecast August 8 — 12, 2022 suggests an attempt to rise and test the resistance level near the area of 1.2275. Where should we expect the currency pair to continue falling with the target above the area of 1.1205. 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 1.2765. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.2995.
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