FX.co ★ Technical analysis of GBP/USD for December 4-9

Trend analysis

This week, GBP/USD may move downward from the level of 1.2707 (closing price of the last weekly candle) to the 50.0% retracement level of 1.2624 (red dashed line). Upon testing this price, it will turn around and rise to the 76.4% retracement level of 1.2896 (red dashed line) and to the 85.4% retracement level of 1.2898 (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 - upward

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 fall from 1.2707 (closing price of the last weekly candle) to the 50.0% retracement level of 1.2624 (red dashed line), and then turn around and climb towards the 76.4% retracement level of 1.2896 (red dashed line) and 85.4% retracement level of 1.2898 (red dashed line).

Alternatively, it could decline from 1.2707 (closing price of the last weekly candle) to the 5 EMA at 1.2561 (red thin line), followed by an upward movement to the 76.4% retracement level of 1.2896 (red dashed line).