Trend analysis
GBP/USD will continue declining this week, starting from the closing of the last weekly candle at 1.0841 to the support line of the downward channel at 1.0495 (thick yellow line). After that it will move to the 23.6% retracement level at 1.0804 (dashed blue line), then to the 38.2% retracement level at 1.1087 (dashed blue line). Quotes may rebound after 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 no first lower shadow on the weekly white candle (Monday - up) and no second upper shadow (Friday - up).
So during the week, pound will fall from 1.0841 (the closing of the last weekly candle) to the support line of the downward channel at 1.0495 (thick yellow line), then bounce up to the 23.6% retracement level at 1.0804 (dashed blue line) and to the 38.2% retracement level at 1.1087 (dashed blue line). Quotes may rebound after testing this level.
Alternatively, the pair may drop from 1.0841 (closing of the last weekly candle) to the 423.6% retracement level at 1.0031 (yellow dotted line), then move to the lower fractal at 1.0345 (dashed blue line). Price may bounce up after.
