FX.co ★ Technical analysis of GBP/USD for October 2-7

Trend analysis

GBP/USD may continue to move downwards from the level of 1.2195 (closing of the last weekly candle) to the support line at 1.2056 (thick red line). Upon reaching this price, the pair will bounce back and test the historical resistance level of 1.2115 (blue dashed line).

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 a second lower shadow (Friday - upward).

So during the week, pound will fall from 1.2195 (closing of the last weekly candle) to the support line at 1.2056 (thick red line), and then bounce up to the historical resistance level of 1.2115 (blue dashed line).

Alternatively, the pair could move downward 1.2195 (closing of the last weekly candle) to the support line at 1.2056 (thick red line), followed by a further drop to the lower boundary of the Bollinger Bands at 1.1867 (black dashed line).