FX.co ★ Technical analysis of GBP/USD for March 7-12, 2022

Trend analysis (Fig. 1)

GBP/USD is likely to dip from 1.3231 (closing of the last weekly candle) to 1.3167, which is the 100% retracement level (red dotted line). Upon reaching it, the pair will fall deeper to the historical support level at 1.3035 (blue dotted line), then go to the support line at 1.2980 (thick white line).

Fig. 1 (daily chart)

Comprehensive analysis:

Indicator analysis - downtrend

Fibonacci levels - downtrend

Volumes - downtrend

Candlestick analysis - downtrend

Trend analysis - downtrend

Bollinger bands - downtrend

Monthly chart - downtrend

All this points to a downward movement in GBP/USD.

Conclusion: The pair will have a downward trend with no first upper shadow on the weekly white candle (Monday - downtrend) and no second lower shadow (Friday - downtrend).

And throughout the week, the pair will decline from 1.3231 (closing of the last weekly candle) to the 100% retracement level at 1.3167 (red dotted line), then go up to the historical support level at 1.3035 (blue dotted line). After that it will move to the support line at 1.2980 (thick white line).

Alternatively, the pair could fall from 1.3231 (closing of the last weekly candle) to the lower border of the Bollinger Band indicator at 1.3049 (black dotted line), then go to the historical resistance level at 1.3200 (blue dotted line).