Trend analysis
GBP/USD will continue declining this week, starting from the closing of the last weekly candle at 1.1416 to the support line of the downward channel at 1.1295 (thick white line). But after that it will move to the 14.6% retracement level at 1.1536 (dashed blue line), then to the 38.2% retracement level at 1.1746 (dashed blue line). The pair may bounce back when testing this level.
Fig. 1 (weekly chart)
Comprehensive analysis:
Indicator analysis - uptrend
Fibonacci levels - uptrend
Volumes - uptrend
Candlestick analysis - uptrend
Trend analysis - uptrend
Bollinger bands - downtrend
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).
So during the week, pound will fall from 1.1416 (the closing of the last weekly candle) to the support line of the downward channel at 1.1295 (thick white line), bounce up to the 14.6% retracement level at 1.1536 (dashed blue line), then go to the 38.2% retracement level at 1.1746 (dashed blue line).
Alternatively, quotes could drop from 1.1746 (closing of the last weekly candle) to the historical support level at 1.1265 (dashed blue line), then move to the 14.6% retracement level at 1.1535 (dashed blue line).
