The main event of the week is the US Department of Labor report, which will determine the Federal Reserve's future course of action. After all, the US central bank is guided not only by inflation, but also by the state of the labor market. And according to forecasts, the unemployment rate itself should remain unchanged, and 250,000 new jobs should be created outside of agriculture. Yesterday's ADP employment report noted 497,000 new jobs in June. This is more than the expected 160,000 growth, but it is also enough to reduce the unemployment rate. In other words, the US Department of Labor report may turn out to be noticeably better than forecasts. And naturally, this will lead to the dollar's growth. However, a strong labor market will cause the Fed not to raise rates. So, after growth, in a fairly short period of time, the dollar will noticeably lose its position.
The GBP/USD pair ended the flat phase along the 1.2700 level with a speculative impulse. The quote temporarily jumped to the value of 1.2779. This indicates that the market sentiment remains bullish.
On the four-hour chart, the RSI technical indicator is hovering in the upper area, which points to the growth in the volume of long positions.
On the same chart, the Alligator's MAs are headed upwards, which reflects the quote's movement.
Outlook
In this case, keeping the price above the 1.2750 mark may point to the growth in the volume of long positions. This may also indicate the recovery process in the pound sterling relative to the recent corrective move. As for the bearish scenario, traders will consider this plan once the price falls below the 1.2700 mark.
The complex indicator analysis unveiled that in the short-term and intraday periods, indicators are providing an upward signal.
