Technical analysis of the GBP/USD pair for Feb 7-12, 2022

Trend analysis

This week, the price from the level of 1.3524 (closing of the last weekly candlestick) is expected to rise to the target of 1.3705 – the pullback level of 50% (yellow dotted line). Once this level is tested, the upward movement may continue to the target of 1.3833 – the pullback level of 61.8% (yellow dotted line). A downward pullback is likely from this level.

Figure 1 (weekly chart)

Comprehensive analysis:

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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 candle.

The price from the level of 1.3524 (closing of the last weekly candlestick) will move up to the target of 1.3705 – the pullback level of 50% (yellow dotted line). After testing it, it may further rise to the target of 1.3833 – the pullback level of 61.8% (yellow dotted line), from which a downward pullback is possible.

As an alternative, the price from the level of 1.3524 (closing of the last weekly candlestick) will decline to the target of 1.3392 – the support line (white thick line), and then start rising to the target of 1.3705 – the pullback level of 50% (yellow dotted line).