GBP/USD. Technical Analysis for the Week of December 8–13

[Ben Graham]

Trend Analysis.

This week, from the level of 1.3329 (the close of the latest weekly candle), the price may begin moving downward toward 1.3270 – a historical resistance level (blue dashed line). When testing this level, the price may pull back upward toward 1.3348 – the resistance line (thick red line).

Fig. 1 (weekly chart).

Comprehensive Analysis:

• Indicator analysis – down
• Fibonacci levels – down
• Volumes – down
• Candlestick analysis – down
• Trend analysis – down
• Bollinger Bands – down
• Monthly chart – down

Conclusion of comprehensive analysis: downward movement.

Overall weekly forecast for the GBP/USD weekly candle:The price will most likely show a downward trend during the week, with the weekly black candle lacking an upper shadow (Monday – downward movement) and having a lower shadow (Friday – upward movement).

Alternative scenario:From the level of 1.3329 (the close of the latest weekly candle), the price may begin moving downward toward 1.3142 – the 38.2% retracement level (red dashed line). Upon reaching this level, upward movement toward 1.3270 – the historical resistance level (blue dashed line) – is possible.

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