On Tuesday, the pair moved up and failed to reach the 85.4% retracement level - 1.3943 (yellow dotted line). It closed the daily candle at 1.3901. Today, the price will try to continue moving up, but much will depend on the news. As per the economic calendar, news is expected at 7.00 UTC for the pound, and 13.30, 19.00 UTC for dollar.
Trend analysis (Fig. 1).
On Wednesday, from the level of 1.3901 (closing of yesterday's daily candle), the market will try to continue moving up in order to reach the 85.4% retracement level - 1.3943 (yellow dotted line). In the case of testing this level, it is possible to move down with the target of 1.3788 - the 13 EMA (yellow thin line).
Figure 1 (Daily Chart).
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - down;
- Volumes - down;
- Candlestick analysis - down;
- Trend analysis - down;
- Bollinger bands - up;
- Weekly chart - down.
General conclusion:
Today, from the level of 1.3901 (closing of yesterday's daily candle), the price will try to continue moving up in order to reach the 85.4% retracement level - 1.3943 (yellow dotted line). In the case of testing this level, it is possible to further move downward with the target of 1.3788 – the 13 EMA (yellow thin line).
Unlikely scenario: from the level of 1.3901 (closing of yesterday's daily candle), the price will try to continue moving up in order to reach the 85.4% retracement level - 1.3943 (yellow dotted line). In the case of testing this level, it may further rise to 1.3979, the upper limit of the Bollinger Line indicator (the black dotted line).
