04.10.202211:53 Forex Analysis & Reviews: Technical analysis of GBP/USD for October 3-8, 2022

Trend analysis

GBP/USD will continue increasing this week, starting from the closing of the last weekly candle at 1.1165 to the 61.8% retracement level at 1.1544 (dashed blue line). After that it will move to the resistance line at 1.1853 (thick white line), then start a downward movement.

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - uptrend

Fibonacci levels - uptrend

Volumes - uptrend

Candlestick analysis - uptrend

Trend analysis - uptrend

Bollinger bands - uptrend

Monthly chart - uptrend

All this points to an upward movement in GBP/USD.

Conclusion: The pair will have a bullish trend, with no first lower shadow on the weekly white candle (Monday - up) and a second upper shadow (Friday - down).

So during the week, pound will rise from 1.1165 (the closing of the last weekly candle) to the 61.8% retracement level at 1.1544 (dashed blue line), then move to the resistance line at 1.1853 (thick white line). A downward movement may begin after that.

Alternatively, quotes could climb from 1.1165 (closing of the last weekly candle) to the 61.8% retracement level at 1.1544 (dashed blue line), then fall down to the 208% retracement level at 1.1179 (yellow dotted line). The pair may continue to rise after testing this level.