Yesterday, the pound retested the 1.2250 level (June 2020 low) and pulled back lower. The signal line of the Marlin Oscillator has turned in a downward direction, the first target of the decline is the support level of 1.2100. Further testing of the MACD line (1.1980) will most likely follow. The price may turn into a medium-term growth from the MACD line, or, after consolidating below it, a further medium-term decline (1.1800, 1.1660).
Today, the UK will release data on GDP for the second quarter. A decline of 0.2% is expected. The contraction for June could be 1.2%. On an annualized basis, a decline in GDP growth is projected from 8.7% to 2.8% y/y. Industrial production for June is expected to decline by 1.3% after increasing by 0.9% in May, that is, May growth will be covered by a fall.
The price returned under the MACD indicator line on the four-hour chart. Consolidating the price below the line (with the opening of a new candle below it) will increase the pressure on the price. Amid the expected weak economic data for the UK, we are waiting for the pound to decline to the first target of 1.2100.