FX.co ★ Indicator analysis. Daily review of GBP/USD for October 7, 2021

The pair moved down on Wednesday, tested the retracement level of 38.2% at 1.3556 (blue dotted line), then closed the daily candle at 1.3579. Today, the price may start moving up. News is expected at 12:30 UTC (dollar).

Trend analysis (Fig. 1).

The market may move up from the level of 1.3579 (closing of yesterday's daily candle) to the target of 1.3601 - the 38.2% retracement level (yellow dashed line). A test of this level may lead to continued upward movement with the target of 1.3660 - the 50.0% retracement level (yellow dashed line).

Fig. 1 (daily chart)

Comprehensive analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - up;

- Candlestick analysis - up;

- Trend analysis - up;

- Bollinger lines - down;

- Weekly chart - up.

General conclusion:

Today, the price may move up from the level of 1.3579 (closing of yesterday's daily candle) to the target of 1.3601 - the 38.2% retracement level (yellow dashed line). A test of this level may lead to continued upward movement with the target of 1.3660 - the 50.0% retracement level (yellow dashed line).

Unlikely scenario: from the level of 1.3579 (closing of yesterday's daily candle), the price may move down to the target of 1.3556 - the 38.2% retracement level (blue dotted line). A test of this level may lead to an upward movement with the target of 1.3601 - the 38.2% retracement level (yellow dashed line).