Forecast for the GBP / USD currency pair

Forecast of the GBP / USD currency pair

Today we will take a look at the GBP / USD currency pair.We are witnessing a general strengthening of USD across most of the  market, including the GBP. Despite the fall of the GBP / USD pair, there is still a risk of further decline. Therefore, in case of a break of support at 1.2610–1.2630, the likelihood of a bearish scenario will increase significantly.

Trading outlook:

The main scenario takes into account a further weakening of the currency pair and, as a result, a breakthrough of the narrow support area of 1.2610–1.2630. The intermediate target is located at 1.2580, but the local target for sellers is at the next low of 1.2500.

An alternative scenario takes into account further growth of the pair, considering the current decline as a correction. As a result, it remains possible until the breakthrough of the psychological support level at 1.2600.

I will draw attention to the absence of important macroeconomic publications from Britain and the USA, while Asia is unlikely to have an impact on the markets. Therefore, trading activity may remain moderate.

The above review is not a direct guide to action, but carries an exclusively recommendatory nature.