FX.co ★ Indicator analysis: Daily review of GBP/USD on May 5, 2022

Trend analysis (Fig. 1).

The pound-dollar pair may move down from the level of 1.2628 (close of yesterday's daily candle) to the historical support level at 1.2487 (blue dotted line). When testing this level, the price may move up to the target at 1.2618, the 23.6% retracement level (red dotted line). Upon reaching this level, the upward movement may continue.

Fig. 1 (daily chart).

Comprehensive analysis:

• Indicator analysis – down;
• Fibonacci levels – down;
• Volumes – down;
• Candlestick analysis – up;
• Trend analysis – up;
• Bollinger bands – up;
• Weekly chart – down.

General conclusion:

Today, the price may move down from the level of 1.2628 (close of yesterday's daily candle) to the historical support level at 1.2487 (blue dotted line). When testing this level, the price may move up to the target at 1.2618, the 23.6% retracement level (red dotted line). Upon reaching this level, the upward movement may continue.

Alternative scenario: from the level of 1.2628 (close of yesterday's daily candle), the price may move downward to the lower fractal at 1.2460 (the daily candle from 05/04/2022). When testing this level, the price may move up.