FX.co ★ Technical analysis of the GBP/USD pair for Dec 20-25, 2021

Trend analysis

This week, the price from the level of 1.3234 (close of the last weekly candle) is expected to rise to the target of 1.3347 – the pullback level of 14.6% (yellow dotted line). After this level is reached, it may resume its upward movement to the target of 1.3442 – the pullback level of 23.6% (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 without the second upper shadow (Friday - up) in the weekly white candlestick.

The price from the level of 1.3234 (close of the last weekly candle) will increase to the target of 1.3347 – the pullback level of 14.6% (yellow dotted line) this week. After reaching it, the upward movement may continue to the target of 1.3442 – the pullback level of 23.6% (yellow dotted line).

As an alternative, the price from level 1.3234 (closing of the last weekly candle) will drop to the target of 1.3119 – support line (red bold line). Once this line is reached, it may begin rising to the target of 1.3347 – the pullback level of 14.6% (yellow dotted line).