FX.co ★ Indicator analysis. Daily review for the GBP/USD pair on May 20, 2021

The pound/dollar pair declined yesterday and almost tested the 23.6% retracement level - 1.4088 (red dotted line). Fundamental analysis played an important role in the downward movement. The market closed the daily candlestick at 1.4110. Today, the price is likely to continue its upward movement. And as per the economic calendar, important news is expected at 12.30 UTC (dollar).

Trend analysis (Fig. 1).

Today, the market from the level of 1.4110 (closing of yesterday's daily candlestick) may continue to move upward with the target of 1.4145 - the 85.4% retracement level (blue dotted line). After testing this level, it is possible to continue working upwards, with the target at 1.4226 - the upper fractal (blue dashed line).

Figure 1 (Daily Chart).

Comprehensive analysis:

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

General conclusion:

Today, the price from the level of 1.4110 (closing of yesterday's daily candle) may continue to move upward with the target of 1.4145 - the 85.4% retracement level (blue dotted line). When testing this level, it is possible to continue working upward, with the target at 1.4226 - the upper fractal (blue dashed line).

Unlikely scenario: from the level of 1.4110 (closing of yesterday's daily candle), it may continue to move upward with the target of 1.4145 - the retracement level of 85.4% (blue dotted line). After testing this level, it is possible that it will start working downwards, with the target of 1.4088 - a retracement level of 23.6% (red dashed line). And upon testing this level, it is possible that the movement will continue downward, with the target of 1.4060 - 13 EMA (yellow thin line).