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.
The material has been provided by InstaForex Company - www.instaforex.com
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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:
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.
The material has been provided by InstaForex Company - www.instaforex.com