The Pound/Dollar GBP/USD currency pair continues to move within the framework of the fall and the formation of the “Head and Shoulders” reversal pattern. At the time of publication of the forecast, the Pound to US Dollar exchange rate on Forex is 1.3021. Moving averages indicate the presence of a short-term bearish trend. Prices have broken through the area between the signal lines downwards, which indicates pressure from sellers of the currency pair and a potential continuation of the instrument’s fall. At the moment, we should expect an attempt to develop a decline in the British Pound against the US Dollar and a test of the support area near the 1.2995 level. Where should we expect the pair’s quotes to bounce back upwards and the British Pound versus the US Dollar currency pair to grow. The target for the pair’s fall, within the Forex forecast, is the area at 1.3225.
GBP/USD Forecast and Analysis for October 22, 2024
An additional signal in favor of the currency pair’s growth will be a test of the support line on the relative strength indicator (RSI). The second signal in favor of the decline will be a rebound from the lower border of the “Head and Shoulders” reversal pattern. The GBP/USD growth option will be cancelled by a fall and a breakout of the support area with the price fixing below 1.2935. This will indicate a breakout of the support level and a continuation of the GBP/USD fall to the area at 1.2705. We should expect confirmation of the pair’s growth with a breakout of the resistance area and the price closing above 1.3105, which will indicate a breakout of the upper border of the “Head and Shoulders” reversal pattern and the beginning of the pattern’s development with targets above.
GBP/USD Forecast and Analysis for October 22, 2024 suggests an attempt to test the support area near the level of 1.2995. Then, continued growth with a target near the level of 1.3225. An additional signal in favor of the rise of the British Pound will be a test of the support line on the relative strength indicator (RSI). The cancellation of the growth option will be the fall of the British Pound against the US Dollar and a breakout of the 1.2935 area. This will indicate a continuation of the decline on the Forex pair with a potential target below the level of 1.2705.
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