The Forex pair GBP/USD continues its movement within the framework of growth development and a reversal pattern formation “Flag”. At the time of this forecast publication, the Pound to US Dollar exchange rate is at 1.3417. Moving averages indicate a short-term bullish trend. Prices have penetrated the area between signal lines upwards, which indicates pressure from buyers in the currency pair and potential for further growth continuation. Currently, we can anticipate an attempt for the GBP/USD rate to develop upwards against the USD, testing resistance close to 1.3465 levels. A subsequent expectation of price retracement downwards is likely following this test before a continuation of the GBP/USD pair’s depreciation. The target for currency depreciation, in line with the Forex forecast, is at level 1.3205.
GBPUSD Forecast and Analysis for May 22, 2025
Additional indication of the currency pair’s depreciation will be when testing the resistance line on the Relative Strength Index (RSI) indicator. A second signal in favor of depreciation will come with a bounce off the upper boundary of the reversal pattern “Wedge”. The rejection option for the currency pair Pound/Dollar is strong growth and breaking the area of resistance with price consolidation above 1.3535. This indicates a breakout of the resistance level and continued growth of the Pound/Dollar pair to an area at around 1.3765. Expect confirmation of depreciation when breaking the support area and closing below 1.3365, which indicates a breakout of the upper boundary of the “Wedge” pattern and commencement of its implementation with targets below.
GBPUSD Forecast and Analysis for May 22, 2025, suggests an attempt at growth development and testing the resistance area near the level of 1.3465. Then, continuation of a decline with a target close to the level of 1.3205. An additional signal in favor of British Pound depreciation would be testing the resistance line on the Relative Strength Index (RSI) indicator. Cancellation of the downside option will be a strong rise of the British Pound against US Dollar and breaking through the area of 1.3535. This will indicate continued growth on the Forex pair with a potential target above the level of 1.3765.
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