FX.co ★ Technical analysis of GBP/USD for January 30 to February 4

Trend analysis

GBP/USD may continue its downward movement this week, starting from the closing of last week's candle at 1.2392 to the 14.6% retracement level at 1.2135 (yellow dotted line). 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 no first upper shadow on the weekly black candle (Monday - down) and a second lower shadow (Friday - up).

So during the week, pound will fall from 1.2392 (closing of last week's candle) to the 14.6% retracement level at 1.2135 (yellow dotted line) and then bounce back to the historical resistance level at 1.2499 (blue dotted line).

Alternatively, quotes could dip from 1.2392 (closing of last week's candle) to the support line at 1.2385 (white dotted line), then bounce up to the upper fractal at 1.2445 (yellow dotted line).