FX.co ★ Technical analysis of GBP/USD for April 3–8, 2023

Trend analysis.

This week, the pound-dollar pair may move downward from 1.2328 (closing of the last weekly candle) to 1.2136, the 14.6% pullback level (yellow dotted line). When testing this level, an upward movement is possible with the target of 1.2499, the historical resistance level (blue dotted line).

Fig. 1 (weekly chart).

Comprehensive analysis:

• Indicator analysis - down;
• Fibonacci levels - down;
• Volumes - down;
• Candlestick analysis - down;
• Trend analysis - up;
• Bollinger bands - up;
• Monthly chart - down.

All these points to a downward movement in GBP/USD.

Conclusion: The pair will have a bearish trend, with no first upper shadow on the weekly black candle (Monday - down) and a second lower shadow (Friday - up).

This week, the price may decline from 1.2328 (closing of the last weekly candle) to 1.2136, the 14.6% pullback level (yellow dotted line). When testing this level, an upward movement is possible with the target of 1.2499, the historical resistance level (blue dotted line).

Alternatively, the price may decline from the level of 1.2328 (closing of the last weekly candle) to the 1.2045 support level (thick white line). When testing this level, an upward movement is possible with the target of 1.2499, the historical resistance level (blue dotted line).