FX.co ★ Technical analysis of GBP/USD for January 2023

trend analysis:

This January, GBP/USD will probably attempt to pull back first from 1.2092 (closing of December monthly candlestick) to the 23.6% retracement level at 1.1946 (yellow dashed line), then continue its upward movement towards the 61.8% retracement level at 1.2748 ( red dotted line). Another rebound may occur after the latter is tested.

Fig. 1 (monthly chart)

Comprehensive analysis:

Indicator analysis - downrend

Fibonacci levels - downtrend

Volumes - uptrend

Candlestick analysis - downrend

Trend analysis - uptrend

Bollinger bands - uptrend

All this points to an upward movement in GBP/USD.

Conclusion: The pair will have a bearish trend with no first upper shadow on the monthly black candle (the first week of the month is black) and a second lower shadow (the last week is white).

Throughout the month, pound will go down from 1.2092 (closing of December monthly candlestick) to the 23.6% retracement level at 1.1946 (yellow dashed line), then continue its upward movement towards the 61.8% retracement level at 1.2748 (red dotted line). Another rebound may occur after the level is tested.

Alternatively, the pair could immediately rise from 1.2092 (closing of December monthly candlestick) to the 61.8% retracement level at 1.2748 (red dotted line), followed by a decline.