The pair traded in the side channel on Wednesday and did not manage to break through 1.2293 - 38.2% pullback level (presented in a red dashed line). Today, the price may begin to move down. Economic calendar news for the pound is expected at 08:30 UTC, and for the dollar at 12:30, 14:00 and 18:30 UTC.
Trend analysis (Fig. 1).
Today, a downward trend is possible from the level of 1.2244 (closing of yesterday's candle) with the target of 1.2174 - a 38.2% pullback level (presented in a blue dotted line). If this level is reached, the downward movement may continue with the target at the lower fractal 1.2077 (presented in a red dashed line).
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - down;
- Volumes - down;
- Candlestick analysis - down;
- Trend analysis - down;
- Bollinger Lines - down;
- Weekly schedule - up.
General conclusion:
Today, the price may move downwards with the target at the lower fractal 1.2077 (presented in a red dashed line).
Another possible scenario is an upward trend from 1.2172 - a 38.2% pullback level (presented in a blue dashed line) with the target of 1.2293 - a 38.2% pullback level (presented in a red dashed line).
