Trend analysis (Fig. 1).
The pound-dollar pair may move downward from the level of 1.1506 (close of Friday's daily candle) to the target at 1.1442, the support line of the descending channel (thick red line). After testing this level, an upward movement is possible with the target of 1.1565, the 13.6% retracement level (blue dotted line). Upon reaching this level, the price may continue to move up.
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis – down;
- Fibonacci levels – down;
- Volumes – up;
- Candlestick analysis – up;
- Trend analysis – up;
- Bollinger bands – down;
- Weekly chart – down.
General conclusion:
Today the price may move downward from the level of 1.1506 (close of Friday's daily candle) to the target at 1.1442, the support line of the descending channel (thick red line). After testing this level, an upward movement is possible with the target of 1.1565, the 13.6% retracement level (blue dotted line). Upon reaching this level, the price may continue to move up.
Alternative scenario: from the level of 1.1506 (close of Friday's daily candle), the price may move downward with the target of 1.1421, the historical support level (blue dotted line). After testing this level, an upward movement is possible with the target of 1.1565, the 14.6% retracement level (blue dotted line).
