Trend analysis (Fig. 1).
The pound-dollar pair may move downward from the level of 1.2198 (close of yesterday's daily candle) to the target of 1.2166, the 23.6% retracement level (blue dotted line). After testing this level, the price may continue to move downward with the target of 1.2119, the 21-period EMA (thin black line). Upon reaching this level, an upward movement is possible to the upper fractal at 1.2275 (daily candle from 08/10/2022).
Fig. 1 (daily chart).
Comprehensive analysis:
Indicator analysis – down;Fibonacci levels – down;Volumes – down;Candlestick analysis – down;Trend analysis – up;Bollinger bands – up;Weekly chart – up.General conclusion:
Today, the price may move downward from the level of 1.2198 (close of yesterday's daily candle) to the target of 1.2166, the 23.6% retracement level (blue dotted line). After testing this level, the price may continue to move downward with the target of 1.2119, the 21-period EMA (thin black line). Upon reaching this level, an upward movement is possible to the upper fractal at 1.2275 (daily candle from 08/10/2022).
Alternative scenario: from the level of 1.2198 (close of yesterday's daily candle), the price may move downward to 1.2166, the 23.6% retracement level (blue dotted line), and then move up to the upper fractal at 1.2275 (daily candle from 08/10/2022 ). After testing this level, the price may continue to move up.