Trend analysis (Fig. 1).
The pound-dollar pair may move upward from the level of 1.2067 (close of Friday's daily candle) to the target of 1.2112, the 61.8% retracement level (red dotted line). After testing this level, the price may continue to move up with the target of 1.2196, the 76.4% retracement level (red dotted line). Upon reaching this level, a downward pullback is possible.
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis – up;
- Fibonacci levels – up;
- Volumes – up;
- Candlestick analysis – down;
- Trend analysis – up;
- Bollinger bands – up;
- Weekly chart – up.
General conclusion:
Today, the price may move upward from the level of 1.2067 (close of Friday's daily candle) to the target of 1.2112, the 61.8% retracement level (red dotted line). After testing this level, the price may continue to move up with the target of 1.2196, the 76.4% retracement level (red dotted line). Upon reaching this level, a downward pullback is possible.
Alternative scenario: from the level of 1.2067 (close of Friday's daily candle), the price may move down to the lower fractal at 1.2002 (daily candle from 08/05/2022). Upon testing this level, an upward movement is possible with the target of 1.2112, the 61.8% retracement level (red dotted line). Upon reaching this level, the price may continue to move up.
