FX.co ★ Indicator analysis: Daily review of GBP/USD on May 12, 2022

Trend analysis (Fig. 1).

The pound-dollar pair may move down from the level of 1.2249 (close of yesterday's daily candle) to the historical support level at 1.2213 (blue dotted line). When testing this level, an upward movement is possible with the target of 1.2346, the 14.6% retracement level (red dotted line). Upon reaching this level, continued upward movement is possible.

Fig. 1 (daily chart).

Comprehensive analysis:

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

General conclusion:

Today, the price may move down from the level of 1.2249 (close of yesterday's daily candle) to the historical support level at 1.2213 (blue dotted line). When testing this level, an upward movement is possible with the target of 1.2346, the 14.6% retracement level (red dotted line). Upon reaching this level, continued upward movement is possible.

Alternative scenario: from the level of 1.2249 (close of yesterday's daily candle), the price may move down to the support at 1.2083 (bold blue line). When testing this level, the price may move up.