FX.co ★ Technical analysis of GBP/USD for February 5-10

Trend analysis

GBP/USD may continue its decline this week, dropping from 1.2629 (closing price of the last weekly candle) to the support line located at 1.2581 (thick white line). Upon testing this line, it will turn around and rise to the 61.8% retracement level of 1.2746 (red dashed line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downward

Fibonacci levels - downward

Volumes - upward

Candlestick analysis - downward

Trend analysis - downward

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 a first lower shadow on the weekly white candle (Monday - downward) and no second upper shadow (Friday - upward).

So during the week, pound will fall from 1.2629 (closing price of the last weekly candle) to the support line located at 1.2581 (thick white line), and then turn around and climb towards the 61.8% retracement level of 1.2746 (red dashed line).

Alternatively, it could go down from 1.2629 (closing price of the last weekly candle) to the support line located at 1.2453 (thick blue line), followed by an upward movement to the 50% retracement level of 1.2724 (red dashed line).