FX.co ★ Technical analysis for GBP/USD pair for the week of March 1-5, 2021

Last week, the pound/dollar pair rose, tested the historical resistance level of 1.4237 (blue dotted line), and declined a lot, slightly not reaching the 5th average EMA of 1.3853 (red thin line). The market closed the weekly candle at 1.3926. This week, the price may continue its growth.

Trend analysis

This week, the price from the level of 1.3926 (closing of the last weekly candle) is expected to rise to the target of 1.4237 (blue dotted line) – historical resistance level. After testing this level, the upward trend may further extend to a target of 1.4325 (weekly candle from 04/15/2018) – the upper fractal.

Figure 1 (weekly chart)

Comprehensive analysis:

• Indicator analysis - up
• Fibonacci levels - up
• Volumes - up
• Candlestick analysis - down
• Trend analysis - up
• Bollinger lines - up
• Monthly chart - up

An upward movement can be concluded based on comprehensive analysis.

The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in the upward trend this week, both without the first lower shadow (Monday - up) and second upper shadow (Friday - up) in the weekly white candlestick.

The first upper target is set at the historical resistance level of 1.4237 (blue dotted line). Once this level is tested, the price may further rise to the target of 1.4325 (weekly candle from 04/15/2018) – the upper fractal.

As an alternative, the price from the level of 1.3926 (closing of the last weekly candle) may decline to the target of 1.3814 (red dotted line) – 14.6% pullback level. After testing it, the price may resume its upward move to the target of 1.3945 (blue dotted line) – 85.4% pullback level.