Last week, the pair, having broken down the support line 1.2974 (white bold line) and moving up, tested the resistance line - 1.3207 (black bold line). Most likely, the resistance line will represent the price this week. Thus, the market will try to move upwards once again to break through the resistance line - 1.3207 (black bold line).
This week, the price of the resistance line 1.3207 (black bold line) may begin to move upward with the goal of reaching a pullback level of 61.8% - 1. 3452 (blue dashed line).
Fig. 1 (weekly schedule).
Comprehensive analysis:
- indicator analysis - up;
- Fibonacci levels - up;
- volumes - down;
- candlestick analysis - neutral;
- trend analysis - up;
- Bollinger Lines - up;
- monthly chart - up.
The conclusion of a comprehensive analysis is an upward movement.
The overall result of calculating the candle of the GBP / USD currency pair according to the weekly chart: the price of the week is likely to have an upward trend with the absence of the first lower shadow of the weekly white candlestick (Monday - up) and the absence of the second upper shadow (Friday - up).
The upper target is 1.3452, which is the pullback level 61.8% (blue dashed line)
An unlikely lower scenario is also possible: That is, working down with the first target 1.2904 which is the lower fractal (red dashed line) from the resistance line 1.3007 (black bold line).
The material has been provided by InstaForex Company - www.instaforex.com