FX.co ★ Technical analysis of GBP/USD for August 8 to September 2

Trend analysis

This week, GBP/USD may continue its downward movement from the level of 1.2576 (closing of the last weekly candle) to the 23.6% retracement level of 1.2480 (blue dotted line). Upon reaching this price, the pair will go to the 38.2% retracement level of 1.2773 (red dotted line), and then move further upwards.

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downward

Fibonacci levels - downward

Volumes - downward

Candlestick analysis - upward

Trend analysis - downward

Bollinger bands - downward

Monthly chart - downward

Conclusion: The indicators point to a downward movement in GBP/USD.

Overall conclusion: The pair will have a bearish trend, with no first upper shadow on the weekly black candle (Monday - downward) and no second lower shadow (Friday - downward).

So during the week, pound will dip from 1.2576 (closing of the last weekly candle) to the 23.6% retracement level of 1.2480 (blue dotted line), followed by a rise to the 38.2% retracement level of 1.2773 (red dotted line) and higher price levels.

Alternatively, the quote may decline from 1.2576 (closing of the last weekly candle) to the historical support level of 1.2312(light blue dotted line), and then bounce up to the lower fractal at 1.2547 (red dotted line).