FX.co ★ Technical analysis of GBP/USD for February 20-25, 2023

Trend analysis

GBP/USD may start an upward movement this week, starting from the closing of last week's candle at 1.2037 to the upper fractal at 1.2442 (yellow dotted line). Upon testing this level, the pair will head towards the 76.4% retracement level at 1.2560 (blue dotted line).

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 these point 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 1.2037 (closing of last week's candle) to the upper fractal at 1.2442 (yellow dotted line), and then go further to the 76.4% retracement level at 1.2560 (blue dotted line).

Alternatively, quotes could dip from 1.2037 (closing of last week's candle) to the 23.6% retracement level at 1.1948 (yellow dashed line), then bounce up to the 61.8% retracement level at 1.2170 (blue dotted line).