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

Trend analysis (Fig. 1).

The pound-dollar pair may move downward from the level of 1.1356 (closing of yesterday's daily candle) to 1.1222, the 23.6% retracement level (yellow dotted line). When testing this level, an upward movement is possible to 1.1533, the 85.4% retracement level (blue dotted line). From this level, further upward movement is possible.

Fig. 1 (daily chart).

Comprehensive analysis:

• indicator analysis – up;
• Fibonacci levels – up;
• volumes – up;
• candlestick analysis – up;
• trend analysis – up;
• Bollinger bands – up;
• weekly chart – up.

General conclusion:

Today, the price may move downward from the level of 1.1356 (closing of yesterday's daily candle) to 1.1222, the 23.6% retracement level (yellow dotted line). When testing this level, an upward movement is possible to 1.1533, the 85.4% retracement level (blue dotted line). From this level, further upward movement is possible.

Alternatively, the price may move downward from the level of 1.1356 (closing of yesterday's daily candle) to the 1.1110 support level (thick blue line). When testing this level, the price may move up.