GBP/USD:
Yesterday, the British pound tested the target support level of 1.2600, which it failed to do on Wednesday. Now it needs to surpass the embedded line of the descending price channel in green on the daily chart, which means settling below yesterday's low. A more significant target at 1.2520 will be within reach.
It is desirable for the price to quickly settle below the level of 1.2600, as a convergence is already being prepared on the four-hour chart. If the price settles below this mark, the convergence will not form. But even if it does, it will be weak.
The UK will release significant data today, and forecasts for it are weak. The Q1 balance of payments may increase the negative balance from -2.5 billion pounds to -9.8 billion pounds, while the final estimate of Q1 GDP is expected to remain unchanged at 0.1%. In the current technical situation, the potential correction is limited by the level of 1.2678. There is a high probability of reaching the target of 1.2520.
