FX.co ★ Technical analysis for GBP/USD pair for the week of Dec 7-12, 2020

Trend analysis

The price from the level of 1.3439 (closing of the last weekly candle) is expected to decline this week to the first target of 1.3225 – the pullback level of 14.6% (red dashed line). If this level is reached, it is possible to continue working down to the target of 1.3054 – support line (white thick line).

Fig. 1 (weekly chart)

Comprehensive analysis:

- indicator analysis - down;

- Fibonacci levels - down;

- volumes - down;

- candlestick analysis - down;

- trend analysis - down;

- Bollinger lines - down;

- monthly chart - down.

A downward movement can be concluded based on the comprehensive analysis.

The overall result of the candlestick calculation on the weekly chart: the price is likely to have a downward trend this week, with no first upper shadow of the weekly black candlestick (Monday - down) and no second lower shadow (Friday - up).

The first downside target is 1.3225 – the pullback level of 14.6% (red dotted line). Upon reaching this level, further decline can be considered to the target of 1.3054 – the pullback level of 23.6% (red dotted line).

An alternative scenario: the price from the level of 1.3439 (closing of the last weekly candle) may decline to the first target of 1.3225 - a pullback level of 14.6% (red dotted line). After reaching this level, it is possible to work upwards to the target of 1.3538 – the upper fractal (red dotted line).