Technical analysis for GBP/USD pair for the week of January 11-16, 2021

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Technical analysis for GBP/USD pair for the week of January 11-16, 2021

Technical analysis for GBP/USD pair for the week of January 11-16, 2021

Trend analysis

This week, the price from the level of 1.3565 (closing of the last weekly candle) is expected to decline to the target of 1.3351 – a pullback level of 14.6% (red dotted line). If this line is tested, the downward movement can continue to the target of 1.3294 – the support line (white bold line), from which growth is possible.

Technical analysis for GBP/USD pair for the week of January 11-16, 2021

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, 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 – a pullback level of 14.6% (red dotted line). If this line is tested, it is possible to continue the downward movement to the target of 1.3294 – the support line (white bold line), from which growth is possible.

An alternative scenario: the price from the level of 1.3565 (closing of the last weekly candle) can decline to the target of 1.3351 – a pullback level of 14.6% (red dotted line). After testing this line, the downward movement can continue to the target of 1.3147 – a pullback level of 23.6% (red dotted line). From this level, it is possible to move upwards.

The material has been provided by InstaForex Company – www.instaforex.com

Source : https://www.fx.co/forex_analysis/quickview/267771/