FX.co ★ Technical analysis of GBP/USD for May 1-6, 2023

Trend analysis

GBP/USD may start moving down this week, starting from the level of 1.2562 (closing of the last weekly candle) to 1.2466, which is the 14.6% retracement level (red dashed line). Upon reaching this price, the pair will resume an upward movement towards 1.2583, which is the upper fractal (red dashed line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downward

Fibonacci levels - downward

Volumes - downward

Candlestick analysis - downward

Trend analysis - upward

Bollinger bands - upward

Monthly chart - downward

All these point to a downward movement in GBP/USD.

Conclusion: The pair is likely to have a bearish trend, with no first upper shadow on the weekly black candle (Monday - downward) and a second lower shadow (Friday - upward).

So during the week, pound may begin falling from the level of 1.2562 (closing of the last weekly candle) to the 14.6% retracement level at 1.2466 (red dashed line), and then rise to the upper fractal at 1.2583 (red dashed line).

Alternatively, the quote could move down from 1.2562 (closing of last week's candle) to the 38.2% retracement level at 1.2284 (red dashed line), and then bounce up to the upper fractal at 1.2583 (red dashed line).