FX.co ★ Technical analysis of GBP/USD for January 23-28, 2023

trend analysis

GBP/USD may start moving down this week, starting from the closing of last week's candle at 1.2135 to the 14.6% retracement level at 1.2135 (yellow dotted line). Then, upon testing this level, the pair may rise to the historical resistance level at 1.2499 (blue dotted line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downtrend

Fibonacci levels - downtrend

Volumes - downtrend

Candlestick analysis - downtrend

Trend analysis - uptrend

Bollinger bands - uptrend

Monthly chart - uptrend

All these point to a downward movement in GBP/USD.

Conclusion: The pair will have a bearish trend, with a first upper shadow on the weekly black candle (Monday - up) and no second lower shadow (Friday - up).

So during the week, pound will fall from 1.2394 (closing of last week's candle) to the 14.6% retracement level at 1.2135 (yellow dotted line),then rise to the historical resistance level at 1.2499 (blue dotted line).

Alternatively, quotes could go up from 1.2394 (closing of last week's candle) to the upper fractal at 1.2443 (yellow dotted line), then bounce down to the 14.6% retracement level at 1.2135 (yellow dotted line).