Currency pair Pound Dollar GBP/USD completes the trading week as part of the development of a correction near the area of 1.1549. The potential for the formation of a reversal pattern “Wedge” remains. The pair continues to move within the descending channel. 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 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 1.1585. Further, a rebound down and the continuation of the fall of the Pound Dollar quotes to the area below the level of 1.0245.
GBP/USD Weekly Forecast October 31 — November 4, 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 31 — November 4, 2022 will be a strong growth and a breakdown of the 1.1975 area. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1.2375. The fall of the currency GBP/USD will be confirmed by a breakdown of the support area and closing of the price below the level of 1.1045, which will indicate a breakdown of the lower boundary of the “Wedge” model and the beginning of the model with targets below.
Among the important news from the UK that may have an impact on the Pound/Dollar rate, it is worth highlighting: Bank of England (BoE) Interest Rate Decision, Speech by Bank of England (BoE) Governor Bailey Speech.
GBP/USD Weekly Forecast October 31 — November 4, 2022 suggests an attempt to rise and test the resistance level near the area of 1.1585. Where should we expect the currency pair to continue falling with the target above the area of 1.0245. 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 1.1975. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.2375.
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