On Monday, the pair was not able to break the 76.4% pullback level (blue dashed line) for the third time. It went on a downward pullback and managed to broke through the pullback level 23.6% at 1.2572 (red dotted line). Today, the downward movement may continue. Economic calendar news for the pound is expected at 06:00 UTC, and for the dollar at 12:30 UTC.
Trend analysis (Fig. 1).
Today, the downward trend may continue from the level of 1.2555 (closing of yesterday's candle) with the target of 1.2511 - a 38.2% pullback level (red dashed line). From this level, the downward trend may continue with the next target of 1.2461 - a 50% pullback level (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 - up;
- Weekly schedule - down.
General conclusion:
Today, the price may continue to move downward with the target of 1.2511 - a 38.2% pullback level (red dashed line). From this level, the downward trend may continue with the next target of 1.2461 - a 50% pullback level (red dashed line).
Another possible scenario is an upward trend upon reaching 1.2511 - a 38.2% pullback level (blue dashed line) with a target of 1.2599 - a 61.8% pullback level (blue dashed line).
