Trend analysis.
In April, the pound/dollar pair is expected to move upwards from the level of 1.3777 (monthly closing price) with a view to reaching the first target of 1.3940 - the 85.4% retracement level (red dotted line). In case the price tests this line, it will most likely continue its bullish movement towards the upper target at 1.4227 - the upper fractal (monthly candlestick of 02/01/2021).
Fig. 1 (monthly chart).
Indicator analysis:
- indicator analysis - up;
- Fibonacci levels - up;
- volume analysis - up;
- candlestick analysis - down;
- trend analysis - up;
- Bollinger lines - up;
Conclusion based on the comprehensive analysis: an upward trend is possible.
According to the monthly chart, the pound/dollar pair is anticipated to move upwards, with no lower shadow (white in the first week of the month) in the monthly white candlestick but with the upper shadow (black in the last week of the month).
The most likely scenario implies that the quotes will go up from the level of 1.3777 (monthly closing price) towards the first target of 1.3940 - the 85.4% retracement level (red dotted line). If the price tests this line, it is likely to continue rising towards the target of 1.4227 - the upper fractal (monthly candlestick of 02/01/2021).
As an alternative, the quotes may go down from the level of 1.3777 (monthly closing price), towards the first target of 1.3561 - the 23.6% retracement level (blue dashed line). Then the price may continue its downward movement with a view to reaching the target level of 1.3509 - the support line of the ascending channel (blue bold line). In case the price tests this line, the pound/dollar pair is expected to resume its bullish run.
