FX.co ★ Technical analysis of GBP/USD for October 24-29, 2022

Trend analysis

GBP/USD will decline this week, starting from the closing of the last weekly candle at 1.1294 to the 38.2% retracement level at 1.1057 (yellow dotted line). After that it will move to the 61.8% retracement level at 1.1549 (dashed blue line), then move upwards to the 76.4% retracement level at 1.1833 (dashed blue line). The quote will resume falling after reaching this level.

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 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 1.1294 (the closing of the last weekly candle) to the 38.2% retracement level at 1.1057 (yellow dotted line), then rise to the 61.8% retracement level at 1.1549 (dashed blue line). It will climb further to the 76.4% retracement level at 1.1833 (dashed blue line), then resume going downwards.

Alternatively, quotes could move down from 1.1294 (closing of the last weekly candle) to the 50.0% retracement level at 1.0920 (yellow dotted line), then bounce up to the 50.0% retracement level at 1.1319 (dashed blue line). The pair may continue to rise after testing this level.