Trend analysis (Fig. 1).
The pound-dollar pair may move downward from the level of 1.2030 (close of Friday's daily candle) to the target of 1.1918, the lower fractal (daily candle from 07/08/2022). After testing this level, an upward movement is possible with the target of 1.1982, the 23.6% retracement level (red dotted line). Upon reaching this level, the price may continue to move upward with the target of 1.2048, the 38.2% retracement level (red dotted line). From this level, a downward pullback is possible.
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis – up;
- Fibonacci levels – up;
- Volumes – up;
- Candlestick analysis – up;
- Trend analysis – up;
- Bollinger bands – up;
- Weekly chart – up.
General conclusion:
Today, the price may move downward from the level of 1.2030 (close of Friday's daily candle) to the target of 1.1918, the lower fractal (daily candle from 07/08/2022). After testing this level, an upward movement is possible with the target of 1.1982, the 23.6% retracement level (red dotted line). Upon reaching this level, the price may continue to move upward with the target of 1.2048, the 38.2% retracement level (red dotted line). From this level, a downward pullback is possible.
Alternative scenario: from the level of 1.2030 (close of the Friday daily candle), the price may move downward with the target of 1.1875, the lower fractal (daily candle from 07/06/2022). Upon reaching this level, an upward movement is possible with the target of 1.1941, the 14.6% retracement level (red dotted line).
