FX.co ★ Indicator analysis. Review on GBP/USD pair on May 6, 2020

On Tuesday, the GBP/USD pair moved down and did not manage to break through the lower fractal at 1.2406 (the red dashed line). Today, the price is likely to continue falling. A series of important news is set for release during the day.

Trend analysis (Fig. 1)

On Wednesday, the price is expected to move in a downward trend from the level of 1.2436 (closing of yesterday's candlestick) and test the target at the support line of 1.2333 (the red bold line). If the price reaches the line, the pair is likely to move up with the upper target at 1.2400, which is a pullback level of 38.2% (the red dashed line).

Fig. 1 (daily chart).

Comprehensive analysis:

- indicator analysis - down;

- Fibonacci levels - down;

- volumes - down;

- candlestick analysis - up;

- trend analysis - down;

- Bollinger Lines - up;

- weekly chart - up.

General conclusion:

Today, the price is expected to move down and test the target at the support line of 1.2333 (the red bold line). If this line is reached, the price is likely to move in the upward direction.

An alternative scenario is also possible: the price can rise from a pullback level of 38.2% - 1.2400 (the red dashed line) and test the target at 1.2495, which is a pullback level of 61.8% (the red dashed line).