On Friday, at the beginning of the day, the pound/dollar pair tested the 8 EMA located at 1.3779 (a blue thin line) and then rose. The pair almost reached the level of 1.3865 (a red dotted line) closing the white candlestick at the level of 1.3845. Today, the pair may continue moving upwards. On Monday, we do not expect any important macroeconomic events.
Trend analysis (Picture 1)
On Monday, the price may continue advancing from the level of 1.3845 (a close of Friday's daily candlestick) towards the level of 1.3936 – the upper limit of the Bollinger band indicator's line (a black dotted line). If the price tests this level, it is likely to move towards 1.4376, the upper fractal (a yellow dotted line).
Picture 1 (Daily chart)
Comprehensive analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volume analysis - up;
- Candlestick analysis - up;
- Trend analysis - up;
- Bollinger band indicator - up;
- Weekly chart - up.
Conclusion:
Today, the price may start rising towards 1.3936 – the upper limit of the Bollinger indicator's line (a black dotted line). If the price tests this level, it is likely to move towards 1.4376, the upper fractal (a yellow dotted line).
In the unlikely scenario, the price may start advancing from the level of 1.3845 (a close of Friday's daily candlestick) towards 1.3936 – the upper limit of the Bollinger indicator line (a black dotted line). If the price tests this level, it may decline to 1.3769 – the 13 EMA (a yellow thin line).
