FX.co ★ Technical analysis of the GBP/USD pair for Jan 3-8, 2021

Trend analysis.

This week, the price from the level of 1.3540 (closing of the last weekly candle) is expected to decline to the target of 1.3458 – the pullback level of 23.6% (red dotted line). After reaching this level, it may resume its growth to the target of 1.3596 – the pullback level of 38.2% (yellow dotted line).

Fig 1 (weekly chart)

Comprehensive analysis:

• Indicator analysis - down
• Fibonacci levels - down
• Volumes - down
• Candlestick analysis - down
• Trend analysis - up
• Bollinger lines - down
• Monthly chart - down

A downward movement can be concluded based on a comprehensive analysis.

The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in a downward trend without the first upper shadow (Monday - down) and with the second lower shadow (Friday - up) in the weekly black candlestick.

The price from the level of 1.3540 (closing of the last weekly candle) will fall to the target of 1.3458 – the pullback level of 23.6% (red dotted line) this week. After reaching it, it may increase again to the target of 1.3596 – the pullback level of 38.2% (yellow dotted line).

As an alternative, the price from the level of 1.3540 (closing of the last weekly candle) will move down to the target of 1.3458 – the pullback level of 23.6% (red dotted line). Once this level is reached, it may further fall to the target of 1.3403 – the pullback level of 38.2% (red dotted line) and only then it can surge again.