Trend-following analysis
This week, GBP/USD could begin a down move from 1.2458, the closing level of the weekly candlestick, with a target at 1.2393, the 23.6% retracement level plotted by the yellow dotted line. When this level is tested, the price could reverse its direction upward with a target at 1.2624, the 50% retracement level plotted by the red dotted line.
Picture 1, weekly timeframe
Complex analysis
- Indicator analysis – down
- Fibonacci levels - down
- Trading volume – down
- Candlestick analysis – down
- Trend-following analysis – up
- Bollinger bands – up
- One-month chart – up
Complex analysis suggests the overall downtrend.
The conclusion for GBP/USD based on the weekly candlestick is that the instrument is expected to follow the downtrend this week. The weekly bearish candlestick is likely to lack the first upper shadow, pointing downward on Monday. However, the second lower shadow is available, pointing upward on Friday.
This week, GBP/USD could begin a down move from 1.2458, the closing level of the weekly candlestick, with a target at 1.2393, the 23.6% retracement level plotted by the yellow dotted line. When this level is tested, the price could reverse its direction upward with a target at 1.2624, the 50% retracement level plotted by the red dotted line.
According to the alternative scenario, from the level of 1.2458, the closing level of the last weekly candlestick, the price could begin its down move with a target at 1.2353, the 23.6% retracement level plotted by the red dotted line. When this level is tested, GBP/USD is likely to reverse upward with a target at 1.2624, the 50.0% retracement level plotted by the red dotted line.
