Last week, the pound/dollar pair declined, tested the level of 1.3829 (blue thin line) – 8th average EMA and then rose, testing the upper fractal of 1.4003 (weekly candlestick from 03/07/2021). The market closed the weekly candle at the level of 1.3972. This week, the price will most likely continue its downward trend.
Trend analysis
This week, the price from the level of 1.3972 (closing of the last weekly candle) is expected to decline to the target of 1.3737 (white thick line) – the support line. After testing this line, it may rise to the target of 1.3942 (blue dotted line) – a pullback level of 85.4%.
Figure 1 (weekly chart)
Comprehensive analysis:
- Indicator analysis - down
- Fibonacci levels - down
- Volumes - down
- Candlestick analysis - up
- Trend analysis - up
- Bollinger lines - up
- Monthly chart - down
A downward movement can be concluded based on comprehensive analysis.
The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in a downward trend, both without the first upper shadow (Monday - down) and without the second lower shadow (Friday - down) in the weekly black candlestick.
The first downward target is the support line of 1.3737 (white thick line). After testing this level, the price may rise to the target of 1.3942 (blue dotted line) – a pullback level of 85.4%.
As an alternative, the price from the level of 1.3972 (closing of the last weekly candle) may decline to the target of 1.3942 (blue dotted line) – a pullback level of 85.4%. Once this level is tested, the upward trend may resume to the target of 1.4237 (blue dotted line) – the historical resistance level.
