FX.co ★ Technical analysis of the GBP/USD pair for Oct 11-16, 2021

Trend analysis

This week, the price from the level of 1.3611 (closing of the last weekly candle) is expected to rise to the target of 1.3729 – the pullback level of 38.2% (yellow dotted line). Once this level is reached, it is likely to resume its growth to the target of 1.3828 – the pullback level of 50.0% (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 - up

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 without the first lower shadow (Monday - up) and the second upper shadow (Friday - up) in the weekly white candlestick.

The price from the level of 1.3611 (closing of the last weekly candle) will make an upward surge to the target of 1.3729 – the pullback level of 38.2% (yellow dotted line). After reaching it, the upward movement may extend to the target of 1.3828 – the pullback level of 50.0% (yellow dotted line).

As an alternative, the price from the level of 1.3611 (closing of the last weekly candle) may increase to the target of 1.3686 – 8th average EMA (blue thin line). After testing this line, it may decline to the target of 1.3444 – the support line (white thick line) and then rise again to the target of 1.3532 – the pullback level of 14.6% (yellow dotted line).