Technical analysis of GBP/USD pair for the week of Apr 27 to May 2

The pair, moving down last week, tested the support line of 1.2246 (red bold line), but then, the price increased by 116 points after leaving this line. The price may most likely continue to move up this week.

Trend analysis.

This week, the price from the level of 1.2362 (closing of the last weekly candle) will move up with the first upper target of 1.2464 – a pullback level of 50.0% (red dashed line) and in case of breaking this level up, we can continue to further work up with a target of 1.2710 – a pullback level of 61.8% (red dashed line).

Fig. 1 (weekly schedule).

Comprehensive analysis:

– indicator analysis – up;

– Fibonacci levels – up;

– volumes – up;

– candlestick analysis – up;

– trend analysis – up;

– Bollinger lines – down;

– 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 first upper target of 1.2464 is a pullback level of 50.0% (red dashed line).

The second upper target of 1.2710 is a pullback level of 61.8% (red dashed line).

An unlikely scenario: the price from a pullback level of 50% – 1.2462 (red dashed line) will move down with the first lower target 1.2174 – a pullback level of 38.2% (blue dashed line). When this level is broken down, we will continue working down with the target of 1.2027 – a pullback level of 50.0% (blue dotted line).

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

Source:: Technical analysis of GBP/USD pair for the week of April 27 to May 2