FX.co ★ Technical analysis of GBP/USD for October 17-22, 2022

Trend analysis

GBP/USD will continue increasing this week, starting from the closing of the last weekly candle at 1.1176 to the 50.0% retracement level at 1.1319 (dashed blue line). After that it will move to the 61.8% retracement level at 1.1549 (blue dotted line), then start a downward movement.

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 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 rise from 1.1176 (the closing of the last weekly candle) to the 50.0% retracement level at 1.1319 (dashed blue line), go to the 61.8% retracement level at 1.1549 (blue dotted line), then start a downward movement.

Alternatively, quotes could climb from 1.1176 (closing of the last weekly candle) to the 50.0% retracement level at 1.1319 (dashed blue line), then bounce down to the 261.8% retracement level at 1.0895 (yellow dotted line). The pair may continue to rise after testing this level.