Currency pair Pound Dollar GBP/USD ends the trading week near the 1.3561 area. The pair continues to move within a bullish correction after testing an important support area. Moving averages indicate a bearish trend. Prices are again testing the area between the signal lines, which indicates pressure from sellers and a potential continuation of the decline in the British Pound against the US Dollar at current levels. At this point, we should expect an attempt to develop a bullish correction and a test of the resistance area near the level of 1.3605. Further, a rebound down and the continuation of the fall in the Pound/Dollar quotes to the area below the level of 1.2935.
GBP/USD Weekly Forecast January 10 — 14, 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 January 10 — 14, 2022 will be a strong growth and a breakdown of the 1.3875 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.4325. Confirmation of the fall in the GBP/USD currency will be a breakdown of the support area and the closing of the price below 1.3205, which will indicate a breakdown of the lower border of the descending channel.
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, United Kingdom Gross Domestic Product (GDP) 3m/3m.
GBP/USD Weekly Forecast January 10 — 14, 2022 suggests an attempt to rise and test the resistance level near the 1.3605 area. Where can we expect the currency pair to continue falling with a target above the 1.2935 area. An additional signal in favor of a decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to drop the pair Pound/Dollar will be a strong growth and a breakdown of the level of 1.3875. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.4325.
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