FX.co ★ Indicator analysis. Daily review for the GBP/USD pair on May 4, 2021

Trend analysis (Fig. 1).

On Tuesday, the market from the level of 1.3905 (the closing of yesterday's daily candlestick) will try to start moving down with the target of 1.3808 - the support line of the ascending channel (red bold line). After testing this line, it is possible to continue working up with the target of 1.3882 - the 38.2% retracement level (blue dotted line). And upon reaching this level, it is possible to continue working up with the target of 1.3948 - the 50.0% retracement level (blue dotted line).

Figure 1 (Daily Chart).

Comprehensive analysis:

• Indicator analysis - down;
• Fibonacci levels - down;
• Volumes - down;
• Candlestick analysis - down;
• Trend analysis - down;
• Bollinger lines - up;
• Weekly chart - up.

General conclusion:

Today, the price from the level of 1.3905 (the closing of yesterday's daily candlestick) will try to continue moving down with the target of 1.3808 - the support line of the ascending channel (red bold line). After testing this line, it is possible to continue working up with the target of 1.3882 – the 38.2% retracement level (blue dotted line). And upon reaching this level, it is possible to continue working up with the target of 1.3948 – the 50.0% retracement level (blue dotted line).

Alternative scenario: from the level of 1.3905 (the closing of yesterday's daily candlestick), the pair will try to start moving down with the target of 1.3886 - 21 EMA (black thin line). After testing this line, it may work upwards with the target of 1.3948 - the retracement level of 50.0% (blue dashed line).