Technical analysis of GBP/USD for January 2-6

Trend analysis

GBP/USD may move downward this week from 1.2727 (closing price of the last weekly candle) to the 50.0% retracement level of 1.2624 (red dotted line). Upon testing this price, it will turn around and rise to the upper fractal located at 1.2826 (weekly candle from December 24, 2023).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downward

Fibonacci levels - downward

Volumes - downward

Candlestick analysis - downward

Trend analysis - upward

Bollinger bands - upward

Monthly chart - downward

Conclusion: The indicators point to a downward movement in GBP/USD.

Overall conclusion: The pair will have a bearish trend, with no first upper shadow on the weekly white candle (Tuesday - downward) and a second lower shadow (Friday - upward).

So during the week, pound will fall from 1.2727 (closing price of the last weekly candle) to the 50.0% retracement level of 1.2624 (red dotted line), and then turn around and climb towards the upper fractal located at 1.2826 (weekly candle from December 24, 2023).

Alternatively, it could decline from 1.2727 (closing price of the last weekly candle) to the 13 EMA at 1.2554 (yellow thin line), followed by an upward movement to the upper fractal located at 1.2826 (weekly candle from December 24, 2023).