Trend analysis
GBP/USD may continue moving downward this week, starting from the level of 1.2442 (closing of the last weekly candle) to 1.2238, which is a 50% retracement level (red dashed line). Upon reaching this price, the pair will turn around and rise toward 1.2499, which is a historical resistance level (blue dashed line).
Fig. 1 (weekly chart)
Comprehensive analysis:
Indicator analysis - downward
Fibonacci levels - downward
Volumes - downward
Candlestick analysis - downward
Trend analysis - downward
Bollinger bands - upward
Monthly chart - downward
All these point to a downward movement in GBP/USD.
Conclusion: Most likely, the pair will have a bearish trend, with no first upper shadow on the weekly black candle (Monday - downward) and no second lower shadow (Friday - downward).
So during the week, pound will go down from 1.2442 (closing of the last weekly candle) to the 50% retracement level at 1.2238 (red dashed line), and then head up to the historical resistance level at 1.2499 (blue dashed line).
Alternatively, the quote could continue sliding down from 1.2442 (closing of last week's candle) to the 61.8% retracement level at 1.2136 (red dashed line), and then bounce up towards the historical resistance level at 1.2499 (blue dashed line).
