Pound to Dollar Rate Forecast to Hit 1.28 and then Recover (If this Double-Bottom Proves True)
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
The GBP to USD conversion has fallen below the key 1.30 level and now looks poised for deeper declines according to analysts.
The GBP/USD is trading below the key 1.29 marker at the time of writing at 1.2895.
The move lower fulfils the next stage in the journey towards the 2016 lows located just below 1.28, something that we would expect to be achieved over coming days.
From a technical perspective, last week's break below the 1.30 mark was a key bearish signal, as it is an important psychological level.
Importantly though, it would not look strange on the chart if the FX rate were to fall to 1.28, then recover as it did in July, move back up, and in the process form a double bottom reversal pattern.
Double Bottoms occur where prices are in the process of basing and reversing trend from down to up.
Confirmation of more upside would require a break above the double bottom’s neckline at circa 1.3400 for confirmation - with an upside target thereafter at between 1.37 and 1.38 probably, depending on where the 50-day moving average was at the time.
read more