Trend analysis
GBP/USD will continue declining this week, starting from the closing of the last weekly candle at 1.1826 to the the lower fractal at 1.1758 (red dotted line). But after that it will move up to the 14.6% retracement level at 1.2047 (red dotted line), then to the 23.6% retracement level 1.2227 (red dotted line). Quotes will fall again upon reaching this level.
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 - uptrend
All this points to an upward movement in GBP/USD.
Conclusion: The pair will have a bullish trend, with a first lower shadow on the weekly white candle (Monday - down) and no second upper shadow (Friday - up).
During the week, pound will dip from 1.1826 (the closing of the last weekly candle) to 1.1758, which is the lower fractal (red dotted line), then bounce to the 14.6% retracement level at 1.2047 (red dotted line) and to the 23.6% retracement level 1.2227 (red dotted line). Quotes will fall again upon reaching this level.
Alternatively, the pair could fall from 1.1826 (closing of the last weekly candle) to the support line at 1.1408 (thick white line), then go to the lower fractal at 1.1758 (red dotted line). Quotes may continue to increase from this level.
