FX.co ★ Technical analysis of the GBP/USD pair for the week of July 20 to 26

The pair, after breaking through the resistance line 1.2665 (red bold line), declined and almost tested the pullback level 50.0% - 1.2456 (blue dashed line) last week. Most likely, the price may begin to increase this week.

Trend analysis.

This week, the price will increase from the level of 1.2563 (closing of the last weekly candlestick) in order to reach the resistance line - 1.2642 (red bold line). If this line is reached, it is possible to work upward with the target at 1.2905 - the upper border of the Bollinger line indicator (black dotted line).

Fig. 1 (weekly schedule).

Comprehensive analysis:

- indicator analysis - up;

- Fibonacci levels - up;

- volumes - up;

- candlestick analysis - up;

- trend analysis - up;

- Bollinger lines - up;

- monthly chart - up.

The conclusion based on a comprehensive analysis is an upward movement.

The general result of calculating the candlestick of the GBP/USD currency pair according to the weekly chart: the price of the week will most likely have an upward trend with the absence of the first lower shadow of the weekly white candlestick (Monday - up) and the absence of the second upper shadow (Friday - up).

The first upper target is the resistance lines at 1.2642 (red bold line). If this line is reached, it is possible to work upwards with the target at 1.2905 - the upper border of the Bollinger line indicator (black dotted line).

An alternative scenario: it is possible to rise in order to reach the resistance line - 1.2642 (red bold line) from the level of 1.2563 (closing of the last weekly candle) and only then we can work downward with the target at 1.2506 - a pullback level of 38.2% (blue dashed line).