Currency pair Pound Dollar GBP/USD ends the trading week with a correction after falling near the 1.1195 area. The pair continues to move within the descending channel. Moving averages indicate the presence of a bearish trend, even despite attempts to move up. 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 bullish correction and test the resistance area near the level of 1.1295. Further, a rebound down and the continuation of the fall of the Pound Dollar quotes to the area below the level of 0.9645.
GBP/USD Weekly Forecast October 17 — 21, 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 October 17 — 21, 2022 will be a strong growth and a breakdown of the 1.1945 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.2435. 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 1.0945.
Among the important news from the UK, which may have an impact on the Pound/Dollar rate, it is worth highlighting: United Kingdom Retail Sales m/m.
GBP/USD Weekly Forecast October 17 — 21, 2022 suggests an attempt to rise and test the resistance level near the area of 1.1365. Where should we expect the currency pair to continue falling with a target above the 0.9585 area. An additional signal in favor of the decline will be a test of the downtrend 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 1.1885. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.2325.
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