FX.co ★ Technical analysis of GBP/USD for week on May 6-11

Trend-following analysis

This week, from 1.2542, the closing level of the last weekly candle, GBP/USD may continue to move upward with a target of 1.2665, the retracement level of 61.8% plotted by the yellow dotted line. Once this level is reached, the price will most likely continue to move upward with a target of 1.2690, a retracement level of 23.6% plotted by the blue dotted line.

Complex analysis

Indicator analysis – up

Fibonacci levels – up

Trading volume – up

Candlestick analysis – up

Trend-following analysis – down

Bollinger bands – down

One-month chart – up

Conclusion of complex analysis: upward move

The result of evaluating the GBP/USD pair's candlestick on the weekly chart: this week, the instrument will most likely follow an uptrend, suggested by the absence of the first lower shadow of the weekly white candle (Monday - up) and the absence of the second upper shadow (Friday - up).

From 1.2542, the closing level of the last weekly candle, the price may continue to move upward with a target of 1.2665, the retracement level of 61.8% plotted by the yellow dotted line. After this level is reached, the instrument will most likely continue to move upward with a target of 1.2690, a retracement level of 23.6% plotted by the blue dotted line.

According to an alternative scenario, from 1.2542, the closing level of the last weekly candle, GBP/USD may begin to move upward with a target of 1.2665, the retracement level of 61.8% plotted by the yellow dotted line. Once this level is reached, the price may pull back down with a target of 1.2594, the 50% retracement level represented by the yellow dotted line.