Technical analysis for GBP/USD pair for the week of May 17-22, 2021

Trend analysis

This week, the price from the level of 1.4096 (closing of the last weekly candle) is expected to rise to the target of 1.4227 – the upper fractal (yellow dotted line). After reaching this line, the upward movement may continue to the next target of 1.4566 – the pullback level of 161.8% (yellow dotted line).

Figure 1 (weekly chart)

Comprehensive analysis:

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An upward movement can be concluded based on comprehensive analysis.

The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in an upward trend, both without the first lower shadow (Monday - up) and without the second upper shadow (Friday - up) in the weekly white candlestick.

The price from the level of 1.4096 (closing of the last weekly candle) will increase to the target of 1.4227 – the upper fractal (yellow dotted line) and after reaching this line, it may further rise to the target of 1.4566 – the pullback level of 161.8% (yellow dotted line).

As an alternative, the price from the level of 1.4096 (closing of the last weekly candle) will rise to the target of 1.4227 – the upper fractal (yellow dotted line). Once this line is tested, it may decline to the target of 1.3838 – the support line of the upward channel (white thick line), and only then it can move upwards.