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

Trend analysis (Fig. 1).

The pound-dollar pair may move downward from the level of 1.2020 (close of yesterday's daily candle) to the target of 1.2001, the 85.4% retracement level (yellow dotted line). After testing this level, the price may move upward with the target of 1.2102, the 50.0% retracement level (red dotted line). Upon reaching this level, the price may continue to move up.

Fig. 1 (daily chart).

Comprehensive analysis:

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

General conclusion :

Today, the price may move downward from the level of 1.2020 (close of yesterday's daily candle) to the target of 1.2001, the 85.4% retracement level (yellow dotted line). After testing this level, the price may move upward with the target of 1.2102, the 50.0% retracement level (red dotted line). Upon reaching this level, the price may continue to move up.

Alternative scenario: from the level of 1.2020 (close of yesterday's daily candle), the price may move upward with the target of 1.2048, the 38.2% retracement level (red dotted line). After testing this level, a downward movement is possible with the target of 1.1875, the lower fractal (red dotted line). Upon reaching this level, the price may move up.