Like EUR/USD, GBP/USD is in consolidation and trading in a narrow range. However, the lack of important macroeconomic data is not a determining factor in this regime, as market participants' reaction to incoming statistics remains extremely weak. Nevertheless, we would like to highlight the most important event of the day, which is the US consumer price index. Today will also see another speech by Atlanta Fed President Raphael Bostic.
Daily
If we look at the daily price chart, there is nothing interesting here. I have specifically highlighted the range in which the GBP/USD pair has been since May 6, i.e. since last Friday, when the US labor market data was released. As for technical aspects, it should be noted that the pair has already consolidated under the broken support at 1.2410 and the important technical level at 1.2400 for more than three consecutive candlesticks. Based on this, we can conclude that there is a true breakdown of the designated support level, to which there has already been a pullback. However, further declines in GBP/USD are paused. It is not yet clear how long this pause will last. As we can see, at the moment of writing this article, the bulls on the pound are making growth attempts, which look very modest so far. If the bulls manage to take the pair not only above the broken support at 1.2410, but also above the red Tenkan line of the Ichimoku indicator, there will be real prerequisites for the upside to continue.
However, it is premature to speculate about further targets for a possible rise. First, let them return above the Tenkan and consolidate above this line. The nearest support is at 1.2259, but bears on the pound need to sell not only that level, but also the strong technical mark at 1.2250. Looking at the current picture, it should not be ruled out that GBP/USD will remain in the allocated trading range for some time. In such a situation, I do not think it is correct to give any clear trading recommendations. However, for those traders who use range trading, it is worth taking advantage of the current one and look for signals on this or lower timeframes to open short positions from the 1.2400-1.2410 price zone. Buying options should be considered after the decline in the price area of 1.2260-1.2250 and appearance of bullish reversal candlestick patterns there.