FX.co ★ GBP/USD. Technical Analysis for the Week of October 20–25

Trend Analysis

This week, from the level of 1.3429 (the closing price of the last weekly candle), the price may begin moving downward toward 1.3141 — the 38.2% retracement level (red dashed line). Upon testing this level, the price may retrace upward toward 1.3270 — the historical support level (blue 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 conclusion: During the week, the GBP/USD price is most likely to follow a downward trend, forming a black weekly candle with a first upper shadow (Monday — upward movement) and a second lower shadow (Friday — upward movement).

Alternative Scenario:

From the level of 1.3429 (the closing price of the last weekly candle), the price may begin moving downward toward 1.3369 — the historical support level (blue dashed line). Upon reaching this level, the price may move upward toward 1.3389 — the 23.6% retracement level (red dashed line).