Technical analysis of the GBP/USD pair for Dec 27-31, 2021

Trend analysis

This week, the price from the level of 1.3396 (closing of the last weekly candle) is expected to surge to the target of 1.3509 – the resistance line (red bold line). After reaching it, it may decline to the target of 1.3441 – 13 middle EMA (yellow thin line).

Figure 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - upFibonacci levels - upVolumes - upCandlestick analysis - upTrend analysis - upBollinger lines - upMonthly chart - up

An upward 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 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 1.3396 (closing of the last weekly candle) will rise to the target of 1.3509 – the resistance line (red bold line) this week. Once this line is reached, it may decline to the target of 1.3441 – 13 middle EMA (yellow thin line).

As an alternative, the price from the level of 1.3396 (close of the last weekly candle) will fall to the target of 1.3301 – the pullback level of 50% (red dotted line). After reaching this level, it is likely to increase to the target of 1.3441 – the pullback level of 23.6% (yellow dotted line).