Trend analysis
GBP/USD may continue its increase this week, rising from 1.2596 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2639 (blue dashed line). After testing the level, it could climb further towards the 85.4% retracement level of 1.2710 (blue dashed 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 no first lower shadow on the weekly white candle (Monday - upward) and a second upper shadow (Friday - downward).
So during the week, pound will climb from 1.2596 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2639 (blue dashed line), and then approach the 85.4% retracement level of 1.2710 (blue dashed line).
Alternatively, it could rise from 1.2596 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2639 (blue dashed line), followed by a pullback towards the 50% retracement level of 1.2588 (red dashed line).
