The Pound Dollar GBP/USD currency pair continues to move within the fall and the completion of the formation of the bearish ”Wedge" model. At the time of publication of the forecast, the exchange rate of the Pound to the US Dollar on Forex is 1.4138. 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 1.4185. 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 25, 2021, is the area at the level of 1.3875.
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 ”Wedge" model. The cancellation of the fall option of the Pound Dollar pair will be a strong growth with a breakdown of the resistance area with prices consolidating above the level of 1.4305. 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 1.4585. Expect confirmation of the fall of the pair with the breakdown of the ascending trend line and the closing of prices under the level of 1.4075.
GBP/USD Pound Dollar forex forecast for May 25, 2021
Important news from the UK, which may affect the rate of the GBP/USD pair, so the pair will continue to move within the framework of technical analysis.
Thus, the GBP/USD Forex forecast for the Pound Dollar on May 25, 2021 suggests an attempt to test the resistance area near the level of 1.4185. Then, a continuation of the fall with a target below the level of 1.3875. 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 1.4305 area. This will indicate a continuation of the pair's rise with a potential target above the level of 1.4585.