Trend analysis
GBP/USD will attempt to continue moving down this week, starting from 1.2030 (closing of the last weekly candle) to the lower fractal at 1.1875 (red dotted line). After that it will return to the 14.6% retracement level at 1.2147 (red dotted line), then go to the 23.6% retracement level at 1.2315 (red dotted line). Price is likely to increase further after these movements.
Fig. 1 (weekly chart)
Comprehensive analysis:
Indicator analysis - uptrend
Fibonacci levels - uptrend
Volumes - uptrend
Candlestick analysis - uptrend
Trend analysis - uptrend
Bollinger bands - uptrend
Monthly chart - uptrendAll this points to an upward movement in GBP/USD.
Conclusion: The pair will have an upward trend, with a first lower shadow on the weekly white candle (Monday - down) and no second upper shadow (Friday - up).
During the week, the quote will decline from 1.2030 (closing of the last weekly candle) to the lower fractal at 1.1875 (red dotted line), bounce to the 14.6% retracement level at 1.2147 (red dotted line), then go to the 23.6% retracement level at 1.2315 (red dotted line). Price is likely to increase further after these movements.
Alternatively, the pair could move down from 1.2030 (closing of the last weekly candle) to the lower fractal at 1.1875 (red dotted line), then go to the lower limit of the Bollinger band indicator at 1.1550 (black dotted line). Price is likely to increase after this movement.
