Weekly Forecast GBP/USD from August 30th to September 3rd 2021

The Pound Dollar GBP/USD currency pair ends the trading week near the 1.3705 area. The pair continues to move within the framework of the correction and formation of the “Wedge” pattern. Prices are again testing the area between the signal lines, which indicates pressure from buyers and a possible continuation of the sterling's rally against the US dollar at current levels. At this point, we should expect an attempt to reduce and test the support area close to the 1.3485 level. In addition, the recovery and the beginning of the sterling / dollar high are quoted for the area above the level of 1.4275.

A further signal in favor of a rise in the pound sterling will be a test of the support line in the relative strength index (RSI). The second sign will be a rebound from the lower edge of the high wedge pattern. The cancellation of the growth option for the GBP/USD pair in the current trading week of 30th August to 3rd September 2021 will be a drop and collapse of the 1.3175 area. This will indicate a break of the support area and a continued dip to the area below 1.2725. The confirmation of the GBP / USD high will be the breaking of the upper limit of the “Wedge” model and the closing of the price above the level of 1.3875.

The GBP/USD weekly forecast and analysis implies an attempt to reduce and test the support level near the 1.3485 area. Where we can expect continued growth of the currency pair with a target above the 1.4275 area. An additional signal in favor of the increase will be a test of the trendline on the Relative Strength Index (RSI). The cancellation of the Pound/Dollar growth option will represent a fall and a break of the 1.3175 level. In this case, we should expect the pair to continue falling with a potential target below the 1.2725 level.