FX.co ★ Technical analysis of GBP/USD for February 19-25

Trend analysis

GBP/USD may continue its increase this week, rising from 1.2596 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2639 (blue dashed line). After testing the level, it could climb further towards the 85.4% retracement level of 1.2710 (blue 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 a second upper shadow (Friday - downward).

So during the week, pound will climb from 1.2596 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2639 (blue dashed line), and then approach the 85.4% retracement level of 1.2710 (blue dashed line).

Alternatively, it could rise from 1.2596 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2639 (blue dashed line), followed by a pullback towards the 50% retracement level of 1.2588 (red dashed line).