FX.co ★ Trading forecast for GBP/USD on October 18, 2021

The GBP/USD pair reached the Weekly Control Zone of 1.3789-1.3755 last Friday. Testing it led to a halt in the upward trend, which indicates that the formation of a downward correction or reversal pattern will most likely occur this week.

The impulsive nature of the upward movement should be considered when making a trading plan. The first days of a decline will indicate either a corrective decline or a reversal pattern. This will require a breakdown of the WCZ 1/4 1.3686-1.3678. As long as this zone is supported, there is a 75% probability of updating this month's high.

To form a sell pattern, it will be necessary to close today's trading below the level of 1.3678. In this case, the formation of the "absorption" pattern of the daily level will occur and the second half of the week will be the time to find favorable prices to sell the instrument.