Yesterday, the pound/dollar did not decide on its direction. Moving down, the price tested the 8 EMA - 1.4017 (blue thin line), and then the market went up. The price closed the daily candlestick at 1.4046. Today, important news is expected at 12.30 UTC (dollar). The price may start moving up.
Trend analysis (Fig. 1).
Today, the market from the level of 1.4046 (closing of yesterday's daily candlestick) will try to start moving up with the target of 1.4095 - the 76.4% retracement level (blue dotted line). Once this level is reached, the price may continue to move upward with the target of 1.4164 - the upper fractal (daily candlestick from 05/11/2021).
Figure 1 (Daily Chart).
Comprehensive analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volumes - up;
- Candlestick analysis - up;
- Trend analysis - up;
- Bollinger lines - up;
- Weekly chart - up.
General conclusion:
Today, the price from the level of 1.4046 (closing of yesterday's daily candlestick) will try to start moving upwards with the target of 1.4095 - the 76.4% retracement level (blue dashed line). Once this level is reached, the price may continue to move upward with the target of 1.4164 - the upper fractal (daily candlestick from 05/11/2021).
Unlikely scenario: from the level of 1.4046 (closing of yesterday's daily candlestick), it will try to start moving upwards with the target of 1.4095 - the 76.4% retracement level (blue dashed line). Upon reaching this level, the price may start moving down with the target of 1.4047 - the 23.6% retracement level (red dotted line).
