Trend analysis
This week, GBP/USD may rise from 1.2715 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2898 (red dotted line). Upon testing it, the pair will move further up towards the 85.4% retracement level of 1.2990 (red dotted line).
Fig. 1 (weekly chart)
Comprehensive analysis:
Indicator analysis - upward
Fibonacci levels -upward
Volumes - upward
Candlestick analysis - upward
Trend analysis - upward
Bollinger bands - upward
Monthly chart - upward
Conclusion: The indicators point to an upward movement in GBP/USD.
Overall conclusion: The pair will have a bullish trend, with a first lower shadow on the weekly white candle (Monday - downward) and a second upper shadow (Friday - downward).
So during the week, pound will climb from 1.2715 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2898 (red dotted line), and then rise further to the 85.4% retracement level of 1.2990 (red dotted line).
Alternatively, it could increase from 1.2715 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2898 (red dotted line), followed by a decline to the upper fractal located at 1.2826 (weekly candle from December 24, 2023).
