18.01.202112:27 Forex Analysis & Reviews: Technical analysis for GBP/USD pair for the week of January 18-23, 2021

Trend analysis

This week, the price from the level of 1.3585 (closing of the last weekly candle) is expected to decline to the target of 1.3354 – a pullback level of 14.6% (red dotted line). If this line is tested, an upward movement will be possible to the target of 1.3705 (red bold line) – the resistance line.

Figure 1 (weekly chart)

Comprehensive analysis:

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

A downward movement can be concluded based on comprehensive analysis.

The overall result of the candlestick calculation based on the weekly chart: the price will most likely have a downward trend this week, without the first upper shadow in the weekly black candlestick (Monday - down) and without the second lower shadow (Friday - down).

The first lower target is 1.3351 (red dotted line) – a pullback level of 14.6%. If this line is tested, there is a possibility of an upward movement to the target of 1.3705 (red bold line) – the resistance line.

An alternative scenario: the price from the level of 1.3585 (closing of the last weekly candle) is expected to decline to the target of 1.3354 (red dashed line) – a pullback level of 14.6%. Once this line is tested, the downward movement can continue to the target of 1.3148 (red dotted line) – a pullback level of 23.6%.