Indicator analysis. Daily review on GBP / USD for May 8, 2020

On Thursday, the pair first traded upward and tested the 21 average EMA at 1.2418 (presented in a black thin line), then after that, a downward pullback movement took place where the pair tested the lower border of the Bollinger line indicator at 1.2266 ( presented in a blue dashed line curve). Today, an upward trend is likely to take place. Economic calendar news for the dollar is expected at 12:30 UTC.

Trend analysis (Fig. 1).

Today, an upward trend is likely to take place from the level of 1.2363 (closing of yesterday's candle) with a target at 1.2447 - a 50% pullback level (presented in a red dashed line). If this level is reached, the price may continue to move upward with a target at 1.2495 - a 61.8% retracement level (presented in a red dashed line).

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Fig. 1 (daily chart).

Comprehensive analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - up;

- Candlestick analysis - up;

- Trend analysis - up;

- Bollinger Lines - up;

- Weekly schedule - up.

General conclusion:

Today, the price may move upward with a target at 1.2495 - a 61.8% retracement level (presented in a red dashed line).

Another possible scenario is a bearish trend from 1.2400 - a 38.2% retracement level (presented in a red dashed line) with a target at 1.2258 - the lower border of the Bollinger line indicator (presented in a blue dashed line curve).

The material has been provided by InstaForex Company - www.instaforex.com