FX.co ★ Indicator analysis: Daily review of GBP/USD on August 8, 2022

Trend analysis (Fig. 1).

The pound-dollar pair may move upward from the level of 1.2067 (close of Friday's daily candle) to the target of 1.2112, the 61.8% retracement level (red dotted line). After testing this level, the price may continue to move up with the target of 1.2196, the 76.4% retracement level (red dotted line). Upon reaching this level, a downward pullback is possible.

Fig. 1 (daily chart).

Comprehensive analysis:

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

General conclusion:

Today, the price may move upward from the level of 1.2067 (close of Friday's daily candle) to the target of 1.2112, the 61.8% retracement level (red dotted line). After testing this level, the price may continue to move up with the target of 1.2196, the 76.4% retracement level (red dotted line). Upon reaching this level, a downward pullback is possible.

Alternative scenario: from the level of 1.2067 (close of Friday's daily candle), the price may move down to the lower fractal at 1.2002 (daily candle from 08/05/2022). Upon testing this level, an upward movement is possible with the target of 1.2112, the 61.8% retracement level (red dotted line). Upon reaching this level, the price may continue to move up.