FX.co ★ Technical analysis of GBP/USD for May 16-21, 2022

trend analysis

This week, GBP/USD is likely to decline from 1.2258 (closing of the last weekly candle) to the lower fractal at 1.2154 (red dotted line), then move to the 14.6% retracement level at 1.2455. Upon reaching that, the pair will go to the 23.6% retracement level at 1.2645 (red dotted line) and then bounce down.

Fig. 1 (weekly chart)

comprehensive analysis:

Indicator analysis - uptrend

Fibonacci levels - uptrend

Volumes - uptrend

Candlestick analysis - uptrend

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 a first lower shadow on the weekly white candle (Monday - down) and a second upper shadow (Friday - down).

And during the week, the price will dip starting from 1.2258 (closing of the last weekly candle) to the lower fractal at 1.2154 (red dotted line), then move to the 14.6% retracement level at 1.2455. Upon reaching that, the pair will go to the 23.6% retracement level at 1.2645 (red dotted line) and then bounce down.

alternatively, the quote could move up from 1.2154 (closing of the last weekly candle) to the 14.6% retracement level at 1.2455 (red dotted line), then bounce to the lower fractal at 1.2154 (red dotted line). The pair may rise again from that level.