FX.co ★ Indicator analysis: GBP/USD daily review on August 7, 2023

Trend analysis (Fig. 1)

On Monday, following a downward movement from the level of 1.2745 (closing of Friday's daily candle) to the 14.6% retracement level of 1.2696 (dotted red line), GBP/USD will rise towards the 38.2% retracement level of 1.2818 (dotted red line).

Fig. 1 (daily chart)

Comprehensive analysis:

Indicator analysis - downtrend

Fibonacci levels - downtrend

Volumes - downtrend

Candlestick analysis - uptrend

Trend analysis - downtrend

Bollinger bands - downtrend

Weekly chart - downtrend

Conclusion: GBP/USD will decline from the level of 1.2745 (closing of Friday's daily candle) to the 14.6% retracement level of 1.2696 (dotted red line), and then bounce up to the 38.2% retracement level of 1.2818 (dotted red line).

Alternatively, the pair may continue its descent from the level of 1.2745 (closing of Friday's daily candle) to the 85.4% retracement level of 1.2669 (dotted blue line), followed by a rise to the 61.8% retracement level of 1.2879 (dotted blue line)