FX.co ★ Technical analysis of GBP/USD for February 28 to March 5

trend analysis

The market, which opened with a gap down to 1.3308 on Monday, may attempt to test the resistance line at 1.3398 (thick white line), then move to the historical resistance level of 1.3480 (blue dotted line). After that it will go up to the 38.2% retracement level at 1.3579 (yellow dotted line), before going down again.

Fig. 1 (daily chart)

Comprehensive analysis:

Indicator analysis - uptrend

Fibonacci levels - uptrend

Volumes - uptrend

Candlestick analysis - downtrend

Trend analysis - uptrend

Bollinger bands - uptrend

Monthly chart - uptrend

All this points to an upward movement in GBP/USD.

Conclusion: The pair will have an upward trend with no lower shadow on the weekly white candle (Monday - up) and no second upper shadow (Friday - up).

And during the week, the price will rise from 1.3308 to the resistance line at 1.3398 (thick white line), then go further up to the historical resistance level at 1.3480 (blue dotted line). It will be followed by a rally to the 38.2% retracement level at 1.3579 (yellow dotted line), and a pullback downwards.

Alternatively, the pair could increase from 1.3308 to the resistance line at 1.3398 (thick white line), then go down to the lower fractal at 1.3271 (weekly candle from 02/06/2022). Upon reaching this level, the quote will rise to 1.3323, which is the 14.6% retracement level (yellow dotted line).