FX.co ★ Technical analysis of GBP/USD for December 11-16

Trend analysis

This week, GBP/USD may continue moving downward from the level of 1.2545 (closing price of the last weekly candle) to the 23.6% retracement level of 1.2353 (red dashed line). Upon testing this price, it will turn around and rise to the 38.2% retracement level of 1.2502 (red dashed line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downward

Fibonacci levels - downward

Volumes - downward

Candlestick analysis - downward

Trend analysis - downward

Bollinger bands - upward

Monthly chart - upward

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 1.2545 (closing price of the last weekly candle) to the 23.6% retracement level of 1.2353 (red dashed line), and then turn around and climb towards the 38.2% retracement level of 1.2502 (red dashed line).

Alternatively, it could decline from 1.2545 (closing price of the last weekly candle) to the historical resistance level of 1.2312 (blue dashed line), followed by an upward movement to the 23.6% retracement level of 1.2478 (blue dashed line).