The pound continued to grow yesterday, but after the opening of the US trading session, the direction of its movement began to gradually reverse. What was just a confirmation of the simple fact that the pound’s previous growth was nothing more than a rebound after a rather long decline. And today the pound will continue to gradually lose its positions. The reason will be data on applications for unemployment benefits in the United States. Since, most likely, the number of applications, albeit not much, will decrease. In particular, the number of initial applications should decrease by 5,000.
Number of retries for unemployment benefits (United States):
The GBPUSD currency pair managed to rebound from the support level of 1.3000. This resulted in forming an insignificant rollback. With all this price change, the quote is still at the base of the medium-term downward trend. Thus, retaining a chance for a subsequent increase in the volume of short positions.
The technical instrument RSI H4 confirms the rollback stage by crossing the 50 middle line to the upside. RSI D1 is still in the lower area of the 30/50 indicator. This move indicates the prevailing interest of traders in the downward trend.
The Alligator H4 indicator has an intersection between the MA moving lines, which proves the fact that a rollback is being built. This signal is short term. Alligator D1 indicates a medium-term downward trend.
Expectations and prospects:
In this situation, the current rollback fits within the boundaries of the deviation of the psychological level. This can lead to a peak movement, which will slow down the formation of a rollback. The main signal to prolong the downward trend is waiting for us after keeping the price below 1.2950 in a four-hour period.
Complex indicator analysis has a buy signal in the short-term and intraday periods due to a rollback. Indicators in the medium term give a sell signal due to a downward trend.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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