FX.co ★ GBP/USD

Hello and have a nice day. Before the opening of trading for the new week, I am evaluating the positions of the pound/dollar currency pair. On the daily chart, we observe the end of an upward wave, as indicated by the "Zigzag" indicator reaching the level of 1.3585. Moreover, the daily stochastic is turning downwards and has just started to enter the indicator's working area, indicating sufficient potential to support the bears, who have already formed three consecutive daily candles. Therefore, I believe that on Monday, the price of GBP/USD will drop, aiming to reach the pair's previous minimum marked by the Zigzag indicator at the level of 1.3340. Especially since the technical analysis aligns with expectations of the strengthening of the US dollar due to the new threat of escalating conflict in the Middle East, information about which has been coming to us all weekend.