The Pound/Dollar GBP/USD currency pair ends the trading week as part of the development of a fall and a bearish channel. Moving averages indicate a bullish trend. Prices have broken through the area between the signal lines downwards, which indicates pressure from sellers and a potential continuation of the fall of the British Pound against the US Dollar from current levels. At this time, we should expect an attempt to develop a rise and test the resistance area near the level of 1.2225. Next, a rebound downwards and a continuation of the fall of Pound/Dollar quotes to the area below the level of 1.1265.
GBP/USD Weekly Forecast October 16 — 20, 2023
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). The second signal will be a rebound from the upper border of the bearish channel. Cancellation of the option of falling the GBP/USD pair in the current trading week of October 16 — 20, 2023 will be a strong increase in quotes and a breakdown of the 1.2625 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.2835. 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 1.1675, which will indicate a breakdown of the lower boundary of the bullish channel.
GBP/USD Weekly Forecast October 16 — 20, 2023 suggests an attempt at correction and a test of the resistance level near the 1.2225 area. Where can we expect the currency pair to continue to fall with a target below the 1.1265 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 fall option for the Pound/Dollar pair will be a strong growth and a breakdown of the level of 1.2625. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.2835.
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