In general, the situation remains unchanged. This is quite logical since the economic calendar is completely empty. And it will remain so until the second half of the current week. The pair might show some movements tomorrow when the market starts preparing for the US inflation report. And these, in turn, could indicate the Federal Reserve's future course of actions. So, in any case, traders will be quite cautious as no one would want to take risks. But unexpected news could pull the market out of its stupor. Therefore, in the next couple of days, it's best to keep an eye on the news feed and try not to miss significant announcements that could influence market participants' sentiments.
The GBP/USD pair has slowed down its upward phase, indicating a prevailing bearish sentiment. Based on the rhythmic aspect, there is a three-week corrective phase from the peak of the medium-term trend, in the structure of which a minor pullback has occurred.
On the four-hour chart, the RSI is moving within the range of the 50 average line, as market participants reposition in the corrective cycle.
On the same time frame, the Alligator's MAs are intersecting each other. This signal emerged due to the recent pullback.
Outlook
The bearish scenario within the corrective structure will become relevant again if the price stays below the 1.2700 mark. This will strengthen short positions and possibly renew the correction's lowest point. The bullish scenario envisions a step-by-step process of restoring the pound's value relative to the ongoing corrective movement. The primary signal may appear if the price stays above the 1.2800 mark on the daily chart.
The complex indicator analysis unveiled that in the short-term and intraday periods, indicators are providing a mixed signal. In the medium-term period, indicators are pointing to the ongoing corrective trend.
