Forex: GBP/USD - Possible Scenarios For British Pound To US Dollar

Relevance up to 09:00 2022-07-20 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Trend analysis (Fig. 1).

The pound-dollar pair may move up from the level of 1.1950 (close of yesterday's daily candle) to 1.2044, the 50% retracement level (red dotted line). When testing this level, a downward movement is possible to 1.2039, the 21-period EMA (thin yellow line). From here, the price may move up.

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 up from the level of 1.1950 (close of yesterday's daily candle) to 1.2044, the 50% retracement level (red dotted line). When testing this level, a downward movement is possible to 1.2039, the 21-period EMA (thin yellow line). From here, the price may move up.

Alternative scenario: from the level of 1.1950 (close of yesterday's daily candle), the price may move upward to 1.1977, the 38.2% retracement level (red dotted line). When testing this level, a downward movement is possible to the historical support level 1.1920 (blue dotted line). From here, the price may move up.

InstaForex Analysis

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