Yesterday, the pound/dollar pair went up and tested the retracement level of 61.8% - 1.3888 (red dashed line). After that, the price went down and tested the retracement level of 76.4% - 1.3804 (red dashed line). The pair closed the daily candlestick at 1.3823. Today, the market may roll back up. And as per the economic calendar, news is expected at 12.30 UTC (dollar).
Trend analysis (Fig. 1).
Today, the market from the level of 1.3823 (closing of yesterday's daily candlestick) will try to continue moving down with the target of 1.3804, the retracement level of 76.4% (red dotted line). After testing this level, the price may start moving upwards with the target of 1.3849 - the retracement level of 23.6% (blue dashed line). And from this level, the price may continue to move upwards with the target of 1.3922 - the 38.2% retracement level (blue dashed line).
Figure 1 (Daily Chart).
Comprehensive analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volumes - up;
- Candlestick analysis - down;
- Trend analysis - up;
- Bollinger lines - up;
- Weekly chart - up.
General conclusion:
Today, the price from the level of 1.3823 (closing of yesterday's daily candlestick) will try to continue moving down with the target of 1.3804, the retracement level of 76.4% (red dotted line). After testing this level, the price may start moving upwards with the target of 1.3849 - the retracement level of 23.6% (blue dashed line). And from this level, the price may continue to move upwards with the target of 1.3922 - the 38.2% retracement level (blue dashed line).
Alternative scenario: from the level of 1.3823 (closing of yesterday's daily candlestick), the price will try to continue moving down with the target at 1.3804, the retracement level of 76.4% (red dashed line). Upon reaching this level, the price may continue moving downward with the target of 1.3752 - the 85.4% retracement level (red dotted line). From this level, upward movement is possible.
