FX.co ★ Technical analysis of GBP/USD for December 18-23

Trend analysis

This week, GBP/USD may continue moving upward from the level of 1.2675 (closing price of the last weekly candle) to the resistance line at 1.2840 (thick blue line). Upon testing this price, it may turn around and fall to the 61.8% retracement level of 1.2746 (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 a downward 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 1.2675 (closing price of the last weekly candle) to the resistance line at 1.2840 (thick blue line), and then turn around and decline to the 61.8% retracement level of 1.2746 (red dashed line).

Alternatively, it could climb from 1.2675 (closing price of the last weekly candle) to the resistance line at 1.2840 (thick blue line), followed by a further upward movement to the 76.4% retracement level of 1.2896 (red dashed line).