Technical analysis for GBP/USD pair for the week of January 4-9, 2021

Trend analysis

This week, the price from the level of 1.3658 (closing of the last weekly candle) is expected to move up to the target of 1.3941 - the pullback level of 85.4% (blue dotted line). If this line is tested, the upward movement can continue to the target of 1.4284 – the historical resistance level (blue dotted line).

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Figure 1 (weekly chart)

Comprehensive analysis:

  • Indicator analysis - up
  • Fibonacci levels - up
  • Volumes - up
  • Candlestick analysis - up
  • Trend analysis - up
  • Bollinger lines - up
  • Monthly chart - up

An upward movement can be concluded based on comprehensive analysis.

The overall result of the candlestick calculation based on the weekly chart: the price is likely to have an upward trend this week, without the first lower shadow of the weekly white candlestick (Monday - up) and without the second upper shadow (Friday - high).

The first upper target is 1.3941 – the pullback level of 85.4% (blue dotted line). After testing this line, the upward movement will continue to the next target of 1.4284 – the historical resistance level (blue dotted line).

An alternative scenario: the price from the level of 1.3658 (closing of the last weekly candle) can decline to the target of 1.3511 – historical support level (blue dotted line). In case of testing this line, the downward movement will continue to the target of 1.3352 – the pullback level of 14.6% (red dotted line). From this level, it is possible to move upwards.

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