FX.co ★ Indicator analysis: Daily review of GBP/USD on May 18, 2022

Trend analysis (Fig. 1).

The pound-dollar pair may move down from 1.2490 (close of yesterday's daily candle) to 1.2366, the 38.2% retracement level (yellow dotted line). In case of testing this level, the price may move upward with the target of 1.2590, the 38.2% retracement level (red dotted line).

Fig. 1 (daily chart).

Comprehensive analysis:

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

General conclusion:

Today the price may move down from the level of 1.2490 (close of yesterday's daily candle) to 1.2366, the 38.2% retracement level (yellow dotted line). In case of testing this level, the price may move upward with the target of 1.2590, the 38.2% retracement level (red dotted line).

Alternative scenario: from the level of 1.2490 (close of yesterday's daily candle), the price may move downward to 1.2217, the 23.6% retracement level (yellow dotted line). In case of testing this level, the price may move up with the target of 1.2590, the 38.2% retracement level (red dotted line).