The pound/dollar continued to move in a sideways channel yesterday. While moving up, it tested the historical resistance level - 1.4217 (blue dotted line). After that, the market went down and tested the 8 EMA - 1.4131 (blue thin line). The market closed the daily candlestick at 1.4148. Today, the price will try to continue its upward movement. And as per the economic calendar, important news will be released at 14.30 UTC (dollar).
Trend analysis (Fig. 1).
Today, the market from the level of 1.4148 (closing of yesterday's daily candlestick) will try to continue moving upwards in order to reach the upper fractal - 1.4232 (red dotted line). In case of testing this level, it is likely to continue working upwards with the target of 1.4382 - the upper border of the Bollinger line indicator (black dashed line). Upon reaching this line, it is possible to work down.
Figure 1 (Daily Chart).
Comprehensive analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volumes - up;
- Candlestick analysis - up;
- Trend analysis - up;
- Bollinger lines - up.
General conclusion:
Today, the price from the level of 1.4148 (closing of yesterday's daily candlestick) will try to continue moving upwards in order to reach the upper fractal - 1.4232 (red dotted line). In case of testing this level, it is likely to continue working upwards with the target of 1.4382 - the upper border of the Bollinger line indicator (black dashed line). Upon reaching this line, it is possible to work down.
Alternative scenario: the price from the level of 1.4148 (closing of yesterday's daily candlestick) will try to start moving downwards in order to reach the 23.6% retracement level - 1.4099 (red dotted line). In case of testing this level, it is possible to continue working upwards with the target at 1.4232 - the upper fractal (red dotted line).
