The price traded downward in August and tested the support level of 1.3679 (red bold line), then rolled back up. The market closed the August monthly candle at 1.3750. The upward trend may continue in September.
Trend analysis.
The price may move upward in September from the level of 1.3750 (closing of the monthly candlestick in August) with the target of 1.3940 - the 85.4% retracement level (red dotted line). In the case of testing this line, the upward movement may continue with the next target of 1.4230 - the historical resistance level (blue dashed line).
Fig. 1 (Monthly chart).
Indicator analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volumes - up;
- Candlestick analysis - up;
- Trend analysis - up;
- Bollinger lines - up;
Conclusion on a comprehensive analysis - an upward trend is possible.
The general result of calculating the candlestick of the GBP/USD currency pair according to the monthly chart: the price is likely to have an upward trend with the absence of the first lower shadow (the first week of the month is white) in the monthly candlestick and the presence of the second upper shadow (the last week is black).
The most likely scenario: from the level of 1.3750 (closing of the August monthly candlestick), the price will move upward with the target of 1.3940 - an 85.4% retracement level (red dotted line). If this line is tested, upward movement may continue, with the next target at 1.4230 - the historical resistance level (blue dashed line).
Alternative scenario: from the level of 1.3750 (closing of the August monthly candlestick), the price will move upward with the target at 1.3940 - an 85.4% retracement level (red dotted line). When testing this level, the price may move down with the first target at the support level of 1.3787 (red bold line), where a downward pullback is possible.
