FX.co ★ Indicator analysis: Daily review of GBP/USD on May 23, 2022

Trend analysis (Fig. 1).

The pound-dollar pair may move up from the level of 1.2489 (close of Friday's daily candle) to 1.2590, the 38.2% retracement level (red dotted line). Upon reaching this level, the price may continue to move upward with the target at 1.2725, the 50.0% retracement level (red dotted line). When testing this level, a downward pullback is possible.

Fig. 1 (daily chart).

Comprehensive analysis:

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

General conclusion:

Today, the price may move up from 1.2489 (close of Friday's daily candle) to 1.2590, the 38.2% retracement level (red dotted line). Upon reaching this level, the price may continue to move upward with the target at 1.2725, the 50.0% retracement level (red dotted line). When testing this level, a downward pullback is possible.

Alternative scenario: from the level of 1.2489 (close of Friday's daily candle), the price may move up with the target of 1.2590, the 38.2% retracement level (red dotted line). Upon reaching this level, downward movement is possible with the target of 1.2487, the historical support level (blue dotted line). From this level, the price may move up.