The pair traded downward on Wednesday and tested 1.2721 - a 61.8% pullback level (red dotted line). Today, the price may continue to move down. As per the economic calendar, pound news is expected at 14:00 UTC, and dollar news is expected at 12:30 and 14:00 UTC.

Trend analysis (Fig. 1).

The market may move downward from the level of 1.2725 (closing of yesterday's daily candlestick) with the target at the historical support level 1.2646 (blue dotted line). Upon reaching this level, the downward trend may continue with the next target of 1.2542 - a 76.4% pullback level (red dotted line).

Figure: 1 (daily chart).

Comprehensive analysis:

- Indicator analysis - down;

- Fibonacci levels - down;

- Volumes - down;

- Candlestick analysis - down;

- Trend analysis - down;

- Bollinger lines - down;

- Weekly chart - down.

General conclusion:

Today, the price maymove down with the target at the historical support level 1.2646 (blue dashed line). Upon reaching this level, the downward trend may continue with the next target of 1.2542 - a 76.4% pullback level (red dotted line).

Another possible scenario: from the level of 1.2725 (closing of yesterday's daily candlestick), the price may move down with the target at the historical support level 1.2646 (blue dotted line). Upon reaching this level, the price may begin to move upward with the target at the historical resistance level 1.2769 (white dashed line).