FX.co ★ GBP/USD. Technical Analysis for the Week of September 22–27

Trend Analysis

This week, from the 1.3466 level (close to the last weekly candle), the price may continue to decline toward the target of 1.3270 – a historical support level (light blue dashed line). Upon testing this level, the price may rebound upward toward 1.3389 – the 23.6% retracement level (red dashed line).

Fig. 1 (weekly chart)

Comprehensive Analysis:

• Indicator analysis – downward;
• Fibonacci levels – downward;
• Volume – downward;
• Candlestick analysis – downward;
• Trend analysis – downward;
• Bollinger Bands – downward;
• Monthly chart – downward.

Overall forecast for the GBP/USD weekly candle: the price will most likely follow a downward trend throughout the week, with no upper shadow on the weekly black (bearish) candle (Monday – downside movement), and a lower shadow present (Friday – upward rebound).

Alternative Scenario: From the 1.3466 level (close of the last weekly candle), the price may start by continuing its downward movement toward 1.3389 – the 23.6% retracement level (red dashed line). Upon reaching this level, a price increase toward 1.3470 – the 13-period EMA (yellow thin line) is possible.