FX.co ★ Indicator analysis: Daily review of GBP/USD on July 12, 2022

Trend analysis (Fig. 1).

The pound-dollar pair may move downward from the level of 1.1887 (close of yesterday's daily candle) to the support level of the descending channel 1.1795 (bold red line). When testing this level, the price may move up to 1.1923, the 14.6% retracement level (red dotted line). From this level, continued upward movement is possible.

Fig. 1 (daily chart).

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

General conclusion:

Today, the price may move downward from the level of 1.1887 (close of yesterday's daily candle) to the support level of the descending channel 1.1795 (bold red line). When testing this level, the price may move up to 1.1923, the 14.6% retracement level (red dotted line). From this level, continued upward movement is possible.

Alternative scenario: from the level of 1.1887 (close of yesterday's daily candle), the price may move downward to the support level of the descending channel 1.1795 (bold red line). When testing this level, the price may continue to move downward to 1.1640, the 161.8% Fibonacci retracement level (blue dotted line). From this level, an upward movement is possible.