FX.co ★ Technical analysis of GBP/USD for September 19-24, 2022

Trend analysis

GBP/USD will continue declining this week, starting from the closing of the last weekly candle at 1.1416 to the support line of the downward channel at 1.1295 (thick white line). But after that it will move to the 14.6% retracement level at 1.1536 (dashed blue line), then to the 38.2% retracement level at 1.1746 (dashed blue line). The pair may bounce back when testing this level.

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 a first lower shadow on the weekly white candle (Monday - down) and no second upper shadow (Friday - up).

So during the week, pound will fall from 1.1416 (the closing of the last weekly candle) to the support line of the downward channel at 1.1295 (thick white line), bounce up to the 14.6% retracement level at 1.1536 (dashed blue line), then go to the 38.2% retracement level at 1.1746 (dashed blue line).

Alternatively, quotes could drop from 1.1746 (closing of the last weekly candle) to the historical support level at 1.1265 (dashed blue line), then move to the 14.6% retracement level at 1.1535 (dashed blue line).