FX.co ★ Technical analysis of GBP/USD for August 7-12

Trend analysis

GBP/USD may continue its downward movement this week, starting from the level of 1.2745 (closing of the last weekly candle) to the 13 EMA located at 1.2708 (thin yellow line). Upon reaching this price, the pair will go to the 85.4% retracement level at 1.2864 (dotted blue line), and then rise further to the historical resistance level of 1.3035 (dotted blue line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - upward

Fibonacci levels - upward

Volumes - upward

Candlestick analysis - upward

Trend analysis - upward

Bollinger bands - upward

Monthly chart - upward

Conclusion: All indicators point to an upward movement in GBP/USD.

Overall conclusion: 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 will fall from 1.2745 (closing of the last weekly candle) to the 13 EMA located at 1.2708 (thin yellow line), and then bounce up to the 85.4% retracement level at 1.2864 (dotted blue line). It could continue going up to the historical resistance level of 1.3035 (dotted blue line).

Alternatively, the quote may decline from 1.2745 (closing of the last weekly candle) to the 38.2% retracement level at 1.2627 (dotted red line), followed by a rise to the 85.4% retracement level at 1.2864 (dotted blue line)