FX.co ★ Technical analysis of GBP/USD pair from Sept 6-10, 2021

Trend analysis

This week, the price from the level of 1.3856 (closing of the last weekly candle) will rise to the target of 1.3911 – the pullback level of 50.0% (yellow dotted line) after a small downward pullback to the level of 1.3831 – the pullback level of 14.6% (red dotted line). After this level is reached, the upward movement can extend to the target of 1.3990 – the pullback level of 61.8% (yellow dotted line).

Figure 1 (weekly chart)

Comprehensive analysis:

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

An upward movement can be concluded based on a comprehensive analysis.

The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in an upward trend, both with the first lower shadow (Monday - down) and the second upper shadow (Friday - down) in the weekly white candlestick.

The price from the level of 1.3856 (closing of the last weekly candle) is expected to increase to the target of 1.3911 – the pullback level of 50.0% (yellow dotted line) after a small downward pullback to the level of 1.3831 – the pullback level of 14.6% (red dotted line). After reaching this level, it can continue rising to the level of 1.3990 – the pullback level of 61.8% (yellow dotted line).

As an alternative, the price from the level of 1.3856 (closing of the last weekly candle) may decline to the target of 1.3742 – the support line (white thick line). After this line is tested, it can rise to the target of 1.3834 – the pullback level of 38.2% (yellow dotted line).