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.