Technical analysis of GBP/USD for August 14-19

Trend analysis

GBP/USD may continue its downward movement this week, starting from the level of 1.2690 (closing of the last weekly candle) to the lower fractal located at 1.2620 (dotted red line). Upon reaching this price, the pair will go to the 50.0% retracement level of 1.2878 (dotted red line), and then move further upwards.

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downward

Fibonacci levels - downward

Volumes - downward

Candlestick analysis - upward

Trend analysis - upward

Bollinger bands - upward

Monthly chart - upward

Conclusion: The indicators point to an upward movement in GBP/USD.

Overall conclusion: The pair will have a bullish trend, with a first lower shadow on the weekly white candle (Monday - downward) and a second upper shadow (Friday - downward).

So during the week, pound will fall from 1.2690 (closing of the last weekly candle) to the lower fractal located at 1.2620 (dotted red line), and then bounce up to the 50.0% retracement level of 1.2878 (dotted red line). The upward movement may continue after the test of this level.

Alternatively, the quote may decline from 1.2690 (closing of the last weekly candle) to the 23.6% retracement level of 1.2480 (dotted blue line), followed by a rise to the 38.2% retracement level of 1.2818 (dotted red line).