The pair continued to move upward on Wednesday, almost reaching the historical resistance level of 1.1937 (blue dotted line). Today, the upward pullback may continue. Strong calendar news for the pound is expected at 07:00 and 12:00 UTC, and for the dollar at 12:30 UTC.
Trend analysis (Fig. 1).
Today, from the level of 1.1893 (closing of yesterday's candle) the pair may roll back downward and test the retracement level of 38.2% - 1.1760 (blue dashed line) before it starts to move up upon the news on 07:00 UTC. Upon reaching this line, the continuation of the upward movement is possible with the target of 1.2096, a retracement level of 38.2% (red dotted line).
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, an upward rollback is possible.
Unlikely scenario: from a retracement level of 38.2% - 1.1760 (blue dashed line) work down with a target of 1.1693, a retracement level of 50.0% (blue dashed line).
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