Trend analysis
GBP/USD may move downward this week from 1.2727 (closing price of the last weekly candle) to the 50.0% retracement level of 1.2624 (red dotted line). Upon testing this price, it will turn around and rise to the upper fractal located at 1.2826 (weekly candle from December 24, 2023).
Fig. 1 (weekly chart)
Comprehensive analysis:
Indicator analysis - downward
Fibonacci levels - downward
Volumes - downward
Candlestick analysis - downward
Trend analysis - upward
Bollinger bands - upward
Monthly chart - downward
Conclusion: The indicators point to a downward movement in GBP/USD.
Overall conclusion: The pair will have a bearish trend, with no first upper shadow on the weekly white candle (Tuesday - downward) and a second lower shadow (Friday - upward).
So during the week, pound will fall from 1.2727 (closing price of the last weekly candle) to the 50.0% retracement level of 1.2624 (red dotted line), and then turn around and climb towards the upper fractal located at 1.2826 (weekly candle from December 24, 2023).
Alternatively, it could decline from 1.2727 (closing price of the last weekly candle) to the 13 EMA at 1.2554 (yellow thin line), followed by an upward movement to the upper fractal located at 1.2826 (weekly candle from December 24, 2023).
