FX.co ★ Technical analysis for GBP/USD pair for the month of May

Trend analysis

This month, the price is expected to rise from the level of 1.3812 (closing of the April monthly candlestick) to the target of 1.4230 (blue dotted line) – the historical resistance level. If this line is tested, the upward movement may continue to the next upper target of 1.4374 – the upper fractal (red dotted line).

Figure 1 (monthly chart)

Indicator analysis:

• Indicator analysis - up
• Fibonacci levels - up
• Volumes - up
• Candlestick analysis - down
• Trend analysis - up
• Bollinger lines - up

An upward movement can be concluded based on comprehensive analysis.

The overall result of the candlestick calculation based on the monthly chart: the price will most likely move in an upward trend without the first lower shadow (first week of the month is white) and with the second upper shadow (last week is black) in the monthly white candlestick.

General scenario: the price from the level of 1.3812 (closing of the April monthly candle) will most likely increase to the target of 1.4230 (blue dotted line) – the historical resistance level. Once this line is tested, the upward movement may extend to the next upper target of 1.4374 – the upper fractal (red dotted line).

Alternatively, the price from the level of 1.3812 (closing of the April monthly candle) may decline to the first target of 1.3561 – a pullback level of 23.6% (blue dotted line). After that, it may continue its growth to the target of 1.3809 – the resistance line of the ascending channel (blue bold line). After testing this line, the upward movement may resume.