The pair continued to move downward on Wednesday, reaching 21 average EMA which is equivalent to 1.3080 presented in a black thin line. Strong calendar news is expected for the pound on Thursday at 09:30 and 12:00 UTC and for the dollar at 13:30 and 15:00 UTC. Also, the market may move down, but much will depend on the news that comes out at 12:00 UTC about interest rates.
Trend analysis (Fig. 1).
On Wednesday, the price may continue to move down with the first target of the support line 1.3050 presented in a white bold line. In case of breaking this line, the next lower target 1.2979 is the support line in red bold line.
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - down;
- Volumes - down;
- Candlestick analysis - down;
- Trend analysis - down;
- Bollinger Lines - down;
- Weekly schedule - down.
General conclusion:
On Wednesday, the price will continue to move down.
Another scenario is also possible, where, from the support line 1.3050 presented in a white bold line, work up with the target of 1.3284 the resistance line presented in a black bold line. Much will depend on the news that comes out at 12:00 UTC about interest rates.
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