FX.co ★ Technical analysis of GBP/USD for October 16-21

Trend analysis

This week, GBP/USD may move upwards from the level of 1.2138 (closing price of the last weekly candle) to the 23.6% retracement level of 1.2353 (red dashed line). Upon reaching this price, the pair will rise further to the 38.2% retracement level of 1.2504 (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 1.2138 (closing price of the last weekly candle) to the 23.6% retracement level of 1.2353 (red dashed line), and then go to the 38.2% retracement level of 1.2504 (red dashed line).

Alternatively, it could continue moving downward from 1.2138 (closing price of the last weekly candle) to the lower fractal at 1.2036 (weekly candle from October 1), followed by a rebound to the 14.6% retracement level of 1.2259 (red dashed line).