FX.co ★ Technical analysis of GBP/USD for November 7-12, 2022

Trend analysis

GBP/USD will continue increasing this week, starting from the closing of the last weekly candle at 1.1378 to the upper fractal at 1.1644 (yellow dotted line). After that it will move to the 76.4% retracement level at 1.1833 (dashed blue 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 a second upper shadow (Friday - down).

So during the week, pound will rise from 1.1378 (the closing of the last weekly candle) to the upper fractal at 1.1644 (yellow dotted line), then go to the 76.4% retracement level at 1.1833 (dashed blue line). A downward movement is likely to follow.

Alternatively, quotes could climb from 1.1378 (closing of the last weekly candle) to the upper fractal at 1.1644 (yellow dotted line), then move down to the 23.4% retracement level at 1.1337 (dashed blue line). The pair may continue to rise after testing this level.