FX.co ★ Indicator analysis: Daily review of GBP/USD on May 31, 2022

Trend analysis (Fig. 1).

The pound-dollar pair may move downward from 1.2648 (close of yesterday's daily candle) to the target of 1.2544, the 23.6% retracement level (yellow dotted line). When testing this level, the price may move upward to the upper fractal at 1.2666 (yellow dotted line).

Fig. 1 (daily chart).

Comprehensive analysis:

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

General conclusion:

Today, the price may move down from 1.2648 (close of yesterday's daily candle) to the target of 1.2544, the 23.6% retracement level (yellow dotted line). When testing this level, the price may move upward to the upper fractal at 1.2666 (yellow dotted line).

Alternative scenario: from the level of 1.2648 (close of yesterday's daily candle), the price may move downward to the historical support level at 1.2582 (blue dotted line). When testing this level, an upward movement is possible to the upper fractal at 1.2666 (yellow dotted line).