Trend analysis (Fig. 1).
The pound-dollar pair may move downward from the level of 1.1618 (close of yesterday's daily candle) to the target of 1.1560, the 261.8% Fibonacci retracement level (red dotted line). When testing this level, an upward movement is possible with the target of 1.1643, the historical resistance level (blue dotted line). Upon reaching this level, the price may continue to move up.
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis – up;
- Fibonacci levels – up;
- Volumes – down;
- Candlestick analysis – up;
- Trend analysis – down;
- Bollinger bands – down;
- Weekly chart – down.
General conclusion:
Today, the price may move downward from the level of 1.1618 (close of yesterday's daily candle) to the target of 1.1560, the 261.8% Fibonacci retracement level (red dotted line). When testing this level, an upward movement is possible with the target of 1.1643, the historical resistance level (blue dotted line). Upon reaching this level, the price may continue to move up.
Alternative scenario: from the level of 1.1618 (close of yesterday's daily candle), the price may move downward to the target of 1.1376, the support line of the descending channel (thick red line). When testing this level, the price may move up.
