GBP/USD may continue its downward movement this week, starting from the level of 1.2745 (closing of the last weekly candle) to the 13 EMA located at 1.2708 (thin yellow line). Upon reaching this price, the pair will go to the 85.4% retracement level at 1.2864 (dotted blue line), and then rise further to the historical resistance level of 1.3035 (dotted blue 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: All 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 no second upper shadow (Friday – upward).
So during the week, pound will fall from 1.2745 (closing of the last weekly candle) to the 13 EMA located at 1.2708 (thin yellow line), and then bounce up to the 85.4% retracement level at 1.2864 (dotted blue line). It could continue going up to the historical resistance level of 1.3035 (dotted blue line).
Alternatively, the quote may decline from 1.2745 (closing of the last weekly candle) to the 38.2% retracement level at 1.2627 (dotted red line), followed by a rise to the 85.4% retracement level at 1.2864 (dotted blue line)
The material has been provided by InstaForex Company – www.instaforex.com
Trend analysis
GBP/USD may continue its downward movement this week, starting from the level of 1.2745 (closing of the last weekly candle) to the 13 EMA located at 1.2708 (thin yellow line). Upon reaching this price, the pair will go to the 85.4% retracement level at 1.2864 (dotted blue line), and then rise further to the historical resistance level of 1.3035 (dotted blue 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: All 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 no second upper shadow (Friday – upward).
So during the week, pound will fall from 1.2745 (closing of the last weekly candle) to the 13 EMA located at 1.2708 (thin yellow line), and then bounce up to the 85.4% retracement level at 1.2864 (dotted blue line). It could continue going up to the historical resistance level of 1.3035 (dotted blue line).
Alternatively, the quote may decline from 1.2745 (closing of the last weekly candle) to the 38.2% retracement level at 1.2627 (dotted red line), followed by a rise to the 85.4% retracement level at 1.2864 (dotted blue line)
The material has been provided by InstaForex Company – www.instaforex.com
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