FX.co ★ Indicator analysis: Daily review of GBP/USD on August 1, 2022

Trend analysis (Fig. 1).

The pound-dollar pair may move upward from the level of 1.2173 (close of Friday's daily candle) to the target of 1.2247, the 85.4% retracement level (red dotted line). After testing this level, the price may continue to move upward with the target of 1.2331, the upper fractal (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 1.2173 (close of Friday's daily candle) to the target of 1.2247, the 85.4% retracement level (red dotted line). After testing this level, the price may continue to move upward with the target of 1.2331, the upper fractal (red dotted line). Upon reaching this level, a downward pullback is possible.

Alternative scenario: from the level of 1.2173 (close of Friday's daily candle), the price may move upward with the target of 1.2213, the historical resistance level (blue dotted line). After testing this level, a downward movement is possible with the target at the support level 1.2086 (thick white line). Upon reaching this level, the price may move up.