FX.co ★ Technical analysis of GBP/USD for October 23-28

Trend analysis

This week, GBP/USD may move upwards from the level of 1.2159 (closing price of the last weekly candle) to the 23.6% retracement level of 1.2353 (red dashed line). It will continue to the 21 EMA located at 1.2414 (black thin 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 lower shadow on the weekly white candle (Monday - upward) and no upper shadow (Friday - upward).

So during the week, pound will rise from 1.2159 (closing price of the last weekly candle) to the 23.6% retracement level of 1.2353 (red dashed line), and then move towards the 21 EMA located at 1.2414 (black thin line).

Alternatively, it could climb upwards from 1.2159 (closing price of the last weekly candle) to the 23.6% retracement level of 1.2353 (red dashed line), followed by a rebound to the historical support level of 1.2312 (blue dashed line).