Technical analysis of the GBP/USD pair for Oct 25-30, 2021

Trend analysis

This week, the price from the level of 1.3750 (closing of the last weekly candlestick) is expected to decline to the target of 1.3671 – the pullback level of 38.2% (blue dotted line). Once this level is reached, the upward movement may resume to the target of 1.3828 – the pullback level of 50.0% (yellow dotted line).

Figure 1 (weekly chart)

Comprehensive analysis:

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A downward movement can be concluded based on a comprehensive analysis.

The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in a downward trend without the first upper shadow (Monday - down) and with the second lower shadow (Friday - up) in the weekly black candlestick.

This week, the price from the level of 1.3750 (closing of the last weekly candlestick) will fall to the target of 1.3671 – the pullback level of 38.2% (blue dotted line). After that, it may rise again to the target of 1.3828 – the pullback level of 50.0% (yellow dotted line).

As an alternative, the price from the level of 1.3750 (closing of the last weekly candlestick) may decline to the target of 1.3733 – the pullback level of 23.6% (blue dotted line). If this level is reached, it is possible to continue its growth to the target of 1.3828 – the pullback level of 50.0% (yellow dotted line).