Technical analysis of GBP/USD pair for the week of May 11 to 16

Trend analysis:

This week, the price from the level of 1.2401 (closing of the last weekly candlestick) will move down with the target at 1.2284 – support line (red bold line), and if this line is tested, working up with the first upper target at 1.2462 – a pullback level 50% (red dashed line) will be considered. If this level is broken up, we will continue to the next target at 1.2710 – a pullback evel of 61.8% (red dashed line). A pullback from this level.

Fig. 1 (weekly schedule).

Comprehensive analysis:

– indicator analysis – up;

– Fibonacci levels – up;

– volumes – up;

– candlestick analysis – neutral;

– trend analysis – down;

– Bollinger Lines – down;

– monthly chart – up.

The conclusion of a comprehensive analysis is an upward movement.

The overall result of calculating the candle of the GBP/USD currency pair on a weekly chart: the price on the week is likely to have an upward trend with the presence of the first lower shadow of the weekly white candle (Monday – up) and the absence of the second upper shadow (Friday – up).

The first lower target of 1.2284 is the support line (red bold line). Followed by working up with the target of 1.2462 – a pullback level of 50% (red dashed line). The weekly upper target of 1.2710 – a pullback level of 61.8% (red dashed line).

An unlikely scenario: the price working down with the first lower target of 1.2174 – a pullback level of 38.2% (blue dashed line) from the support line is 1.2284 (red bold line). When this level is broken down, continue working down with the target of 1.2028 – a pullback level of 50% (blue dashed line).

The material has been provided by InstaForex Company – www.instaforex.com