FX.co ★ Technical analysis of GBP/USD for September 18-23

Trend analysis

This week, GBP/USD may begin to move upwards from the level of 1.2379 (closing of the last weekly candle) to the 14.6% retracement level of 1.2488 (red dashed line). Upon reaching this price, the pair will go to the 23.6% retracement level of 1.2557 (red dashed line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - upward

Fibonacci levels - upward

Volumes - upward

Candlestick analysis - upward

Trend analysis - upward

Bollinger bands - downward

Monthly chart - upward

Conclusion: The 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 rise from 1.2379 (closing of the last weekly candle) to the 14.6% retracement level of 1.2488 (red dashed line), and then move towards the 23.6% retracement level of 1.2557 (red dashed line).

Alternatively, it could continue moving downward from 1.2379 (closing of the last weekly candle) to the historical support level of 1.2312 (blue dashed line), followed by an increase to the 14.6% retracement level of 1.2488 (red dashed line).