Technical analysis of GBP/USD for January 15-20

Trend analysis

This week, GBP/USD may rise from 1.2747 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2897 (red dashed line). Upon testing it, the pair will move further up towards the 85.4% retracement level of 1.2990 (red dashed line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - upward

Fibonacci levels -upward

Volumes - upward

Candlestick analysis - upward

Trend analysis - upward

Bollinger bands - upward

Monthly chart - upward

Conclusion: The indicators point to an upward movement in GBP/USD.

Overall conclusion: The pair will have a bullish trend, with a first lower shadow on the weekly white candle (Monday - upward) and a second upper shadow (Friday - downward).

So during the week, pound will climb from 1.2747 (closing price of the last weekly candle) to the resistance line at 1.2852 (yellow bold line), and then rise further to the 76.4% retracement level of 1.2897 (red dashed line).

Alternatively, it could increase from 1.2747 (closing price of the last weekly candle) to the 76.4% retracement level of 1.2897 (red dashed line), followed by a decline to the upper fractal located at 1.2826 (weekly candle from December 24, 2023).