FX.co ★ Indicator analysis: Daily review of GBP/USD on August 16, 2022

Trend analysis (Fig. 1).

The pound-dollar pair may move upward from the level of 1.2050 (close of yesterday's daily candle) to 1.2112, the 61.8% retracement level (red dotted line). When testing this level, the price may continue to rise to 1.2196, the 76.4% retracement level (red dotted line). From this level, a continued upward move is possible.

Fig. 1 (daily chart).

Comprehensive analysis:

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

General conclusion:

Today the price may move upward from 1.2050 (close of yesterday's daily candle) to 1.2112, the 61.8% retracement level (red dotted line). When testing this level, the price may continue to rise to 1.2196, the 76.4% retracement level (red dotted line). From this level, a continued upward move is possible.

Alternative scenario: from the level of 1.2050 (close of yesterday's daily candle), the price may move downward to 1.2025, the 50.0% retracement level (blue dotted line). When testing this level, an upward movement is possible to 1.2112, the 61.8% retracement level (red dotted line). From this level, the price may continue to move up.