FX.co ★ Technical analysis for GBP/USD pair for the week of February 1-5, 2021

Trend analysis

This week, the price from the level of 1.3701 (closing of the last weekly candle) is expected to increase to the target of 1.3942 (blue dotted line) – the pullback level of 85.4%. Once this level is tested, the upward movement can resume to the target of 1.4074 (white bold line) – resistance line.

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 will most likely have an upward trend this week, without the first lower shadow in the weekly white candlestick (Monday - up) and with the second upper shadow (Friday - down).

The first upward target is 1.3942 (blue dotted line) – a pullback level of 85.4%. After testing this level, it is possible to continue the upward movement to the target of 1.4074 (white bold line) – resistance line.

An alternative scenario: the price from the level of 1.3701 (closing of the last weekly candle) is likely to decline to the target of 1.3415 (red dotted line) – a pullback level of 14.6%. From this level, further growth can be expected.