Trend analysis:
GBP/USD will continue to move downward in January, falling from the closing of the January monthly candle at 1.2683 to the support line located at 1.2405 (thick blue line). After that, it will rise to the 14.6% retracement level of 1.2731 (yellow dashed line) and may resume an upward trend.
Fig. 1 (monthly chart)
Comprehensive analysis:
Indicator analysis - downtrend
Fibonacci levels - downtrend
Volumes - downtrend
Candlestick analysis - downtrend
Trend analysis - downtrend
Bollinger bands - uptrend
Conclusion: All signals point to a downward movement in GBP/USD.
Overall conclusion: The pair will have a bearish trend, with no first upper shadow on the monthly black candle (first week of month - black) and a second lower shadow (last week - white).
Therefore, for this month, pound will decline from 1.2683 (closing of the January monthly candle) to the support line located at 1.2405 (thick blue line), followed by a rise to the 14.6% retracement level of 1.2731 (yellow dashed line). The upward trend may resume after reaching this level.
Alternatively, pound will go down from 1.2683 (closing of the January monthly candle) to the 50% retracement level of 1.2289 (red dashed line), and then increase to 14.6% retracement level of 1.2731 (yellow dashed line).
