FX.co ★ Indicator analysis. Daily review for the GBP/USD currency pair on January 7, 2021

The pair moved in a side channel yesterday. First, it moved up and tested the pullback level of 76.4%, 1.3676 (yellow dotted line), and then went down, in turn, and tested the 13th average EMA 1.3537 (yellow thin line). Today, the price is likely to continue to work down. As per the economic calendar, news is expected at 9.30 UTC (pound), and 13.30 and 15.00 UTC (dollar).

Trend analysis (Fig. 1).

Today, the market from the level of 1.3604 (closing of yesterday's daily candle) can continue to move down with the target of 1.3481 - the historical support level (blue dotted line). When testing this line, it is possible to continue working upward with the target of 1.3676 - a pullback level of 76.4% (yellow dotted line).

Figure 1 (Daily Chart).

Comprehensive analysis:

• Indicator analysis - down;
• Fibonacci levels - down;
• Volumes - down;
• Candlestick analysis - down;
• Trend analysis - up;
• Bollinger bands - up;
• Weekly chart - down.

General conclusion:

Today, the price from the level of 1.3604 (closing of yesterday's daily candle) can continue to move down with the target of 1.3481 - the historical support level (blue dotted line). When testing this line, it is possible to continue working upwards with the target of 1.3676 - a pullback level of 76.4% (yellow dotted line).

Alternative scenario: the pair from the level of 1.3604 (closing of yesterday's daily candle) may continue to move down with the target of 1.3543 - 13 EMA (yellow thin line). When testing this line, it is possible to work up, with the target of 1.3702 - the upper fractal (red dotted line).