FX.co ★ Technical analysis of GBP/USD for January 2024

Trend analysis:

GBP/USD will continue to move upwards in January, rising from the closing of the December monthly candle at 1.2727 to the resistance line located at 1.2958 (yellow bold line). Upon testing this level, the pair will move to the upper fractal at 1.3141 (yellow dotted line), and then pullback downwards.

Fig. 1 (monthly chart)

Comprehensive analysis:

Indicator analysis - uptrend

Fibonacci levels - uptrend

Volumes - uptrend

Candlestick analysis - uptrend

Trend analysis - uptrend

Bollinger bands - uptrend

Conclusion: All signals point to an upward movement in GBP/USD.

Overall conclusion: The pair will have a bullish trend, with no first lower shadow on the monthly white candle (first week of month - white) and no second upper shadow (last week - white).

Therefore, for this month, pound will rise from 1.2727 (closing of the December monthly candle) to the resistance line located at 1.2958 (yellow bold line), followed by a move to the upper fractal at 1.3141 (yellow dotted line). The pair may decline after testing this level.

Alternatively, pound could climb from 1.2727 (closing of the December monthly candle) to the resistance line at 1.2958 (yellow bold line), and then bounce down to the 14.6% retracement level of 1.2731 (yellow dotted line).