FX.co ★ Technical analysis of GBP/USD for September 4-10, 2022

Trend analysis

GBP/USD will continue declining this week, starting from the closing of the last weekly candle at 1.1506 to the support line of the downward channel at 1.1442 (thick white line). But after that it will move to the 14.6% retracement level at 1.1771 (red dotted line), then to the 208% retracement level at 1.1601 (dashed blue line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - uptrend

Fibonacci levels - uptrend

Volumes - uptrend

Candlestick analysis - uptrend

Trend analysis - uptrend

Bollinger bands - downtrend

Monthly chart - uptrend

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

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

So during the week, pound will fall from 1.1506 (the closing of the last weekly candle) to the support line of the downward channel at 1.1442 (thick white line), bounce up to the 14.6% retracement level at 1.1771 (red dotted line), then go back down to the 208% retracement level at 1.1601 (dashed blue line).

Alternatively, quotes could drop from 1.1506 (closing of the last weekly candle) to the historical support level at 1.1264 (blue dotted line), then move to the lower fractal at 1.1495 (weekly candle from 08/28/2022). The pair may continue to rise from this level.