FX.co ★ Technical analysis of GBP/USD for December 26-31, 2022

Trend analysis

GBP/USD is likely to continue moving down this week, starting from the closing of the last weekly candle at 1.2048 to the support line at 1.1984 (thick white line). Then, it could bounce up to the upper fractal at 1.2445 (dotted yellow line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downtrend

Fibonacci levels - downtrend

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 bearish trend, with no first upper shadow on the weekly black candle (Tuesday - down) and a second lower shadow (Friday - down).

So during the week, pound will fall from 1.2048 (the closing of the last weekly candle) to the support line at 1.1984 (thick white line), then bounce up to the upper fractal at 1.2445 (dotted yellow line).

Alternatively, quotes could go down from 1.2048 (the closing of the last weekly candle) to the 23.6% retracement level at 1.1948 (dashed yellow line), then bounce up to the resistance line at 1.2628 (thick white line).