The pair moved in the side channel on Tuesday, first testing the pullback level below 50.0% equivalent to 1.2971 (blue dashed line), and then the pullback level above 50.0% at 1.3041 (red dashed line). Today, strong calendar news for the pound is expected at 12:30 UTC, and for the dollar at 13:30 and 19:00 UTC. It is possible that today the downward movement will continue, with the first target of 1.2971, the pullback level of 50% (blue dotted line).
Trend analysis (Fig. 1).
Today, from the pullback level of 38.2% equivalent to 1.2994 (blue dashed line), a downward movement is possible with the target 1.2932, the support line (red bold line). If this level is reached, an upward movement is possible with the target of 1.3002, the retracement level of 38.2% (red dashed line).
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - down;
- Volumes - down;
- Candlestick analysis - down;
- Trend analysis - up;
- Bollinger lines - down;
- Weekly schedule - down.
General conclusion:
Today, the price may continue to move down.
An unlikely but quite possible scenario is from a retracement level of 38.2% equivalent to 1.2994 (red dashed line), work upward with a target of 1.3042, the retracement level of 50.2% (red dashed line).
