Indicator analysis: GBP/USD daily review on May 1, 2023

Trend analysis (Fig. 1)

GBP/USD may start moving down this Monday, starting from the closing of Friday’s daily candle at 1.2562 to the 23.6% retracement level at 1.2497 (blue dashed line). After this level is tested, the pair will slide further down to the 38.2% retracement level at 1.2467 (blue dashed line).

Fig. 1 (daily chart)

Comprehensive analysis:

Indicator analysis – downtrend

Fibonacci levels – downtrend

Volumes – downtrend

Candlestick analysis – downtrend

Trend analysis – uptrend

Bollinger bands – uptrend

Weekly chart – downtrend

Conclusion: GBP/USD is likely to decline from the level of 1.2562 (closing of Friday’s daily candle) to the 23.6% retracement level at 1.2497 (blue dashed line). Afterwards, it will move to the 38.2% retracement level at 1.2467 (blue dashed line).

Alternatively, the pair could go down from the level of 1.2562 (closing of Friday’s daily candle) to the 23.6% retracement level at 1.2497 (blue dashed line). Then, there will be a rebound towards the upper fractal at 1.2583 (yellow dashed line).

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