Trend analysis (Fig. 1).
The pound-dollar pair may move downward from the level of 1.1416 (close of Friday's daily candle) to the lower fractal 1.1349 (blue dotted line). After testing this level, an upward movement is possible with the target of 1.1441, the 23.6% retracement level (blue dotted line). Upon testing this level, the price may continue to move upward with the target of 1.1496, the 38.2% retracement level (blue dotted line).
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis – up;
- Fibonacci levels – up;
- Volumes – up;
- Candlestick analysis – up;
- Trend analysis – up;
- Bollinger bands – down;
- Weekly chart – up.
General conclusion:
Today the price may move downward from the level of 1.1416 (close of Friday's daily candle) to the lower fractal 1.1349 (blue dotted line). After testing this level, an upward movement is possible with the target of 1.1441, the 23.6% retracement level (blue dotted line). Upon testing this level, the price may continue to move upward with the target of 1.1496, the 38.2% retracement level (blue dotted line).
Alternative scenario: from the level of 1.1416 (close of Friday's daily candle), the price may move downward with the target of 1.1201, the lower limit of the Bollinger band indicator (black dotted line). After testing this level, an upward movement is possible to the resistance level 1.1348 (thick red line).
