Indicator analysis. Daily review of GBP/USD for October 1, 2021

The pair moved up on Thursday and almost tested 1.3528 - the 23.6% retracement level (yellow bold line), then moved down, closing the daily candle at 1.3470. Today, the market may roll back down. News is expected at 08:30 UTC (pound) and 14:00 UTC (dollar).

Trend analysis (Fig. 1).

The market may move downward from the level of 1.3470 (closing of yesterday's daily candle) with the target at 1.3410 - the support line of the descending channel (yellow bold line). After testing this line, the price may move upward with the target of 1.3483 - the 14.6% retracement level (yellow dashed line). From here, further 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 lines - up;

- Weekly chart - up.

General conclusion :

Today, the price may move downward from the level of 1.3470 (closing of yesterday's daily candle) with the target at 1.3410 - the support line of the descending channel (yellow bold line). After testing this line, the price may move upward with the target of 1.3483 - the 14.6% retracement level (yellow dashed line). From here, further upward movement is possible.

Unlikely scenario: from the level of 1.3470 (closing of yesterday's daily candle), the price may move down to 1.3410 - the support line of the descending channel (yellow bold line). After testing this line, the price may continue to move downward with the target at 1.3301 - the lower border of the Bollinger line indicator (black dashed line).

The material has been provided by InstaForex Company - www.instaforex.com

from RobotFX