Last week, the pound/dollar pair declined and tested the lower fractal of 1.3731 (yellow dashed line) and then increased, almost testing the level of 1.3911 – 5th average EMA (red thin line). The price closed the weekly white candlestick at 1.3902. This week, it may continue to decline.
Trend analysis
This week, the price from the level of 1.3902 (closing of the last weekly candlestick) is expected to decline to the target of 1.3731 – the lower fractal (yellow dotted line). After reaching it, it is likely to rise to the target of 1.3805 – the pullback level of 14.6% (yellow dotted line). Once this level is tested, the upward movement may resume to the next target of 1.3851 – the pullback level of 23.6% (yellow dotted line).
Figure 1 (weekly chart)
Comprehensive analysis:
- Indicator analysis - down
- Fibonacci levels - down
- Volumes - down
- Candlestick analysis - down
- Trend analysis - down
- Bollinger lines - down
- Monthly chart - up
A downward movement can be concluded based on a comprehensive analysis.
The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in a downward trend without the first upper shadow (Monday - down) and with the second lower shadow (Friday - up) in the weekly black candlestick.
The price from the level of 1.3902 (closing of the last weekly candlestick) is expected to decline to the target of 1.3731 – the lower fractal (yellow dotted line). After reaching this line, it may rise to the target of 1.3805 – the pullback level of 14.6% (yellow dotted line). The upward movement can extend to the next target of 1.3851 – the pullback level of 23.6% (yellow dotted line) after testing this level.
As an alternative, the price from the level of 1.3902 (closing of the last weekly candlestick) may decline to the target of 1.3731 – the lower fractal (yellow dotted line) and further plunge to the target of 1.3577 – the pullback level of 23.6% (red dotted line). After reaching this level, the upward movement will resume.
