Technical analysis of GBP/USD for May 15-20, 2023

Trend analysis

GBP/USD may continue moving downward this week, starting from the level of 1.2448 (closing of the last weekly candle) to 1.2225, which is a 50% retracement level (red dotted line). Upon reaching this price, the pair will turn around and rise to 1.2428, which is a 23.6% retracement level (red dotted line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downward

Fibonacci levels - downward

Volumes - upward

Candlestick analysis - downward

Trend analysis - upward

Bollinger bands - upward

Monthly chart - downward

All these point to a downward movement in GBP/USD.

Conclusion: Most likely, the pair will have a bearish trend, with no first upper shadow on the weekly black candle (Monday - downward) and no second lower shadow (Friday - upward).

So during the week, pound will go down from the level of 1.2448 (closing of the last weekly candle) to the 50% retracement level at 1.2225 (red dotted line), and then head up to the 23.6% retracement level at 1.2428 (red dotted line).

Alternatively, the quote could slide from 1.2448 (closing of last week's candle) to the 38.2% retracement level at 1.2327 (red dotted line), and then bounce up towards the 23.6% retracement level at 1.2428 (red dotted line).