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05.12.202211:31 Forex Analysis & Reviews: Technical analysis of GBP/USD for December 5-10, 2022

trend analysis

GBP/USD will move downward this week, most likely from the closing of the last weekly candle at 1.2288 to the support line at 1.2044 (blue bold line). But after that it will rise to the historical resistance level at 1.2499 (blue dotted line) and to higher price levels.

Exchange Rates 05.12.2022 analysis

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downtrend

Fibonacci levels - downtrend

Volumes - downtrend

Candlestick analysis - downtrend

Trend analysis - uptrend

Bollinger bands - uptrend

Monthly chart - uptrend

All this points to a downward movement in GBP/USD.

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

So during the week, pound will fall from 1.2288 (the closing of the last weekly candle) to the support line at 1.2044 (blue bold line), then bounce up to the historical resistance level at 1.2499 (blue dotted line). The upward movement may continue from this level.

Alternatively, quotes could go up from 1.2288 (the closing of the last weekly candle) to the historical resistance level at 1.2499 (blue dotted line). If this level is tested, the upward price movement may continue.

*这里的市场分析是为了增加您对市场的了解,而不是给出交易的指示。

Stefan Doll,
Analytical expert of InstaSpot
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