The GBP/USD currency pair is ending the trading week within a declining trend and a descending channel near 1.3396. Moving averages indicate a bullish trend. Prices have broken upwards through the area between the signal lines, indicating buying pressure and a potential continuation of the decline in the British Pound against the US Dollar from current levels. Currently, we expect an attempt at a bullish correction and a test of the resistance area near 1.3505. Subsequently, a downward rebound and a continued decline in the GBP/USD pair to below 1.2675 are expected.
GBP/USD Weekly Forecast January 12 – 16, 2026
An additional signal for the British Pound to decline will be a test of the resistance line on the relative strength indicator. A second signal will be a rebound from the upper boundary of the descending channel. A strong rally and a breakout of the 1.3785 area would cancel out the GBP/USD decline this week (January 12-16, 2026). This would indicate a breakout of the resistance area and continued growth above 1.4175. A breakout of the support area and a price close below 1.3275 would confirm a decline in the GBP/USD pair, signaling a breakout of the lower boundary of the bullish channel.
GBP/USD Weekly Forecast January 12 – 16, 2026 suggests an attempt to develop a bullish correction and test the resistance level near 1.3505. From this point, we should expect a continued decline in the currency pair with a target below 1.2675. A test of the trend line on the relative strength indicator (RSI) would be an additional signal of decline. A strong rally and a breakout of 1.3785 would cancel out the downside scenario for the GBP/USD pair. In this case, we should expect continued growth with a potential target above 1.4175.
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