Let’s call a spade a spade – the market is stagnant. This is mostly due to the empty economic calendar, which is quite standard for the final week of the month. Usually, it is accompanied by other events like speeches by central bank representatives.
However, this time, it just so happened that the meetings of key central banks took place literally the week before, and everything that could affect the market had already been said. The only thing you can pay attention to today is the final GDP data for both the US and the UK. However, final estimates usually have no impact because they simply confirm previous estimates, which the market has already taken into account. Only in the rare case of a discrepancy between the final estimates and the preliminary ones does the market show some reaction. So most likely, the market will continue to tread water.
The volume of short positions on the GBP/USD pair decreased around the level of 1.2600, leading to a slowdown in the downward cycle.
On the four-hour chart, the RSI moved near the 50 middle line, thus reflecting a possible flat.
On the same time frame, the Alligator’s MAs are headed downwards, indicating residual signs of the downward cycle.
Outlook
In order for the pound to fall further, the price must settle below the level of 1.2600 by the end of the day. In this case, it could extend the current corrective cycle. The alternative scenario considers the area around the level of 1.2600 as support, allowing for a rebound in the range of 1.2600/1.2650.
In terms of complex indicator analysis, indicators suggest trading in the range of 1.2600/1.2650 in the short term and intraday periods.
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