FX.co ★ Technical analysis of GBP/USD for January 29 to February 3

Last week, the pair, moving upward, tested the historical resistance level of 1.2761 (blue dashed line). After that, it declined and tested the 8 EMA at 1.2668 (thin blue line). The market closed the weekly candle at 1.2698. Next week, the price may continue moving downward.

Trend analysis

This week, GBP/USD may fall from 1.2698 (closing price of the last weekly candle) to the 50.0% retracement level of 1.2624 (red dashed line). Upon testing it, the pair will go up towards the 61.8% retracement level of 1.2746 (red dashed line).

Fig. 1 (weekly chart)

Comprehensive analysis:

Indicator analysis - downward

Fibonacci levels -downward

Volumes - downward

Candlestick analysis - downward

Trend analysis - downward

Bollinger bands - downward

Monthly chart - downward

Conclusion: The indicators point to a downward movement in GBP/USD.

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

So during the week, pound will fall from 1.2698 (closing price of the last weekly candle) to the 50.0% retracement level of 1.2624 (red dashed line), and then go up towards the 61.8% retracement level of 1.2746 (red dashed line).

Alternatively, it could drop from 1.2698 (closing price of the last weekly candle) to the support line at 1.2557 (bold white line), followed by a rise to the 50.0% retracement level of 1.2624(red dashed line).