FX.co ★ Technical analysis of GBP/USD for May 8-13, 2023

Trend analysis

GBP/USD may continue moving upward this week, starting from the level of 1.2628 (closing of the last weekly candle) to 1.2781, which is a historical resistance level (blue dashed line). Upon reaching this price, the pair will continue rising to 1.2866, which is the 85.4% retracement level (blue dashed line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - upward

Fibonacci levels - upward

Volumes - upward

Candlestick analysis - downward

Trend analysis - upward

Bollinger bands - upward

Monthly chart - upward

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

Conclusion: Most likely, the pair will have a bullish trend, with no first lower shadow on the weekly white candle (Monday - upward) and no second upper shadow (Friday - upward).

So during the week, pound may continue rising from the level of 1.2628 (closing of the last weekly candle) to the historical resistance level at 1.2781 (blue dashed line), and then head towards the 85.4% retracement level at 1.2866 (blue dashed line).

Alternatively, the quote could climb upward from 1.2628 (closing of last week's candle) to the historical resistance level at 1.2781 (blue dashed line), and then bounce down to the upper fractal at 1.2651 (red dashed line).