FX.co ★ Technical analysis of the GBP/USD pair for Jan 10-15, 2021

Trend analysis

This week, the price from the level of 1.3585 (closing of the last weekly candlestick) is expected to surge to the target of 1.3719 – the pullback level of 50% (yellow dotted line). After this level is reached, a downward pullback to the target of 1.3597 – the upper fractal (red dotted line) may start.

Fig 1 (weekly chart)

Comprehensive analysis:

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

An upward 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 an upward trend both without the first lower shadow (Monday - up) the second upper shadow (Friday - up) in the weekly white candlestick.

The price from the level of 1.3585 (closing of the last weekly candlestick) will rise to the target of 1.3719 – the pullback level of 50% (yellow dotted line) this week. After reaching it, the start of a downward pullback to the target of 1.3597 – the upper fractal (red dotted line) can be expected.

As an alternative, the price from the level of 1.3585 (closing of the last weekly candlestick) will decline to the target of 1.3458 – the pullback level of 23.6% (red dotted line). After that, it can resume its growth to the target of 1.3596 – the pullback level of 38.2% (yellow dotted line). A further increase will occur after reaching this level.