FX.co ★ Technical analysis of GBP/USD for May 2023

Trend analysis:

GBP/USD will probably move down in May, starting from the closing of the April monthly candle at 1.2562 to the 14.6% retracement level at 1.2254 (yellow dashed line). Upon reaching this price, the pair will head towards the 61.8% retracement level at 1.2748 (red dashed line)

Fig. 1 (monthly chart)

Comprehensive analysis:

Indicator analysis - uptrend

Fibonacci levels - uptrend

Volumes - downtrend

Candlestick analysis - downtrend

Trend analysis - uptrend

Bollinger bands - uptrend

All this points to an upward movement in GBP/USD.

Conclusion: The pair will have a bullish trend, with a first lower shadow on the monthly white candle (the first week of the month is black) and no second upper shadow (the last week is white).

Throughout the month, pound will rise from 1.2562 (closing of the April monthly candle) to the 14.6% retracement level at 1.2254 (yellow dashed line), and then head towards the 61.8% retracement level at 1.2748 (red dashed line)

Alternatively, it could climb from 1.2562 (closing of the April monthly candle) to the 61.8% retracement level at 1.2748 (red dashed line), and then show a downward movement to the 14.6% retracement level at 1.2254 (yellow dashed line).