There is nothing surprising about the fact that the market stood still, since the macroeconomic calendar was completely empty yesterday. Pretty much the same as today. Sure, the data on jobless claims in the United States will be published, but the changes should be purely symbolic. In particular, both the number of initial and continuing claims should increase by 3,000. This is an extremely insignificant growth that is not able to affect the situation. The same is essentially true with regard to the GDP data for the United States, which should only confirm the previous preliminary estimates, which showed a slowdown of economic growth from 1.9% to 0.9%. But this fact has long been taken into account by the market. So the market is likely to consolidate in anticipation of the eurozone inflation data tomorrow which is the most important event of the week.
GDP change (United States):
GBP/USD slightly pulled back after updating the local high of the week. It passed the support level of 1.2300, relative to which there was a decrease in the volume of short positions.
On the four-hour and 24-hour charts, the RSI technical indicator is hovering in the upper area of 50/70, which points to the growth in the volume of long positions.
On the same charts, the Alligator's MAs are headed upwards, which reflects the quote's movement.
Outlook
Staying above the 1.2300/1.2350 range will probably lead to further growth. In this scenario, GBP can rise further, allowing an uptrend in the medium-term, increasing the chances of reaching the local high.
However, take note that falling below 1.2300 on the daily chart may lead to a more significant decline compared to the current pullback.
In terms of the complex indicator analysis, we see that in the short-term period, technical indicators are focused on the pullback. Meanwhile, in the intraday period, the indicators are reflecting an upward cycle.
