The pair traded downward on Friday testing the support level 1.2915 (red bold line). Today, the price may continue to move down. As per the economic calendar, pound news is expected at 09:30 UTC, and dollar news is at 15:00 UTC.
Trend analysis (Fig. 1).
The market may move down from the level of 1.2942 (closing of Friday's daily candlestick) with the target at 1.2868 - a 61.8% pullback level (red dotted line). Upon testing this level, the downward trend may continue with the next target of 1.2792 - a 76.4% pullback level (red dashed line).
Figure: 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - down;
- Volumes - down;
- Candlestick analysis - up;
- Trend analysis - down;
- Bollinger lines - down;
- Weekly chart - down.
General conclusion:
Today, the price may continue to move downward with the target at 1.2868 - a 61.8% pullback level (red dotted line). Upon testing this level, the downward trend may continue with the next target of 1.2792 – a 76.4% pullback level (red dashed line).
Another possible scenario: from the level of 1.2942, the price may continue to move downward with the target of 1.2867 – a 61.8% pullback level (red dashed line). Upon testing this level, the price may move upward with the target at 1.2983 – a 38.2% pullback level (blue dashed line).
