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

Trend analysis

GBP/USD will continue moving up this week, most likely from the closing of the last weekly candle at 1.2134 to the resistance line at 1.2542 (thick white line). Upon reaching this, the pair will fall down to the 14.6% retracement level at 1.2137 (dashed yellow line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - uptrend

Fibonacci levels - uptrend

Volumes - uptrend

Candlestick analysis - downtrend

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 1.2134 (the closing of the last weekly candle) to the resistance line at 1.2542 (thick white line), followed by a decline to the 14.6% retracement level at 1.2137 (dashed yellow line).

Alternatively, quotes could go up from 1.2134 (the closing of the last weekly candle) to the upper fractal at 1.2445 (dashed yellow line), then fall down to the 14.6% retracement level at 1.2137 (dotted yellow line).