Observes signs (7)
I believe the answer is:
notices
This clue is a double definition.
'observes' is the first definition.
(noticing is a kind of observing)
'signs' is the second definition.
(a notice is a sign or message)
(Other definitions for notices that I've seen before include "Remarks upon publicly displayed informations" , "advertisements" , "Perceives, sees" , "Section (anag) - spots" , "Pays attention" .)