Pound Dollar GBP/USD Forex currency pair continues to move within the framework of a slight increase and a descending channel. At the time of publication of the forecast, the exchange rate of the Pound to the US Dollar on Forex is 1.3918. Moving averages indicate the presence of a short-term bullish trend. Prices are pushed up from the area between the signal lines, which indicates pressure from buyers of the currency pair and the potential continuation of the growth of the instrument. At the moment, we should expect an attempt to increase the British Pound against the US Dollar and test the resistance area near the level of 1.4035. Where again we should expect a rebound and a continuation of the fall in the quotes of the British Pound currency pair against the US Dollar. The target of the downward movement of the pair, within the Forex forecast for May 6, 2021, is the area at the level of 1.3635.
GBP/USD Forex forecast for May 6, 2021
An additional signal in favor of the fall of the currency pair will be the test of the resistance line on the relative strength indicator. The second signal in favor of growth will be a rebound from the upper limit of the descending channel. The cancellation of the fall option of the Pound Dollar pair will be a decline with a breakdown of the resistance area with prices consolidating above the level of 1.4125. This will indicate the breakdown of the resistance area and the continuation of the growth of the Pound Dollar pair in the area above the level of 1.4475. Expect confirmation of the fall of the pair with a breakdown of the support area and the closing of prices under the level of 1.3775, which will indicate a breakdown of the lower border of the ascending channel.
GBP/USD Forex forecast for May 6, 2021
Among the important news from the UK, which may have an impact on the GBP/USD pair, it is worth highlighting: The Bank of England's Interest Rate Decision (Bank of England (BoE) Interest Rate Decision), the Speech of the Chairman of the Bank of England Bailey (Bank of England (BoE) Governor Bailey Speech).
Thus, the GBP/USD forecast for May 6, 2021 suggests an attempt to test the resistance area near the level of 1.4035. Then, a continuation of the fall with a target below the level of 1.3635. An additional signal in favor of the fall of the British Pound will be the test of the resistance line on the relative strength indicator. The cancellation of the fall option will be a strong growth and a breakdown of the 1.4125 area. This will indicate a continuation of the pair's rise with a potential target above the level of 1.4475.