Judging by the pound's decline since February, its yesterday's rise could hardly be defined as a rebound. Nevertheless, the currency managed to recoup some losses. Today, during the European session, the British pound may drop amid the UK unemployment rate data. According to the forecast, unemployment may increase to 3.8% from 3.7%.
UK Unemployment Rate
However, at the beginning of the US trade, the pound sterling may return to the current levels. The fact is that in the US, consumer price growth should slacken to 6.3% from 6.5%. Not so long ago, Jerome Powell said that the regulator would continue to raise the key rates because of the labor market situation. However, the Fed may change its approach since inflation is slackening. Notably, lower inflation may have a negative effect on the US dollar.
US Inflation Rate
The volume of short positions on the pound/dollar pair dropped when the price reached the psychological level of 1.2000. As a result, the pair rebounded and returned to 1.2150.
On the four-hour chart, the RSI technical indicator returned to the upper area of 50/70 because of the rebound. This points to a further rise in the volume of long positions.
On the four-hour chart, the Alligator's MAs are intersecting each other, which reflects stagnation. On the daily chart, the MAs are headed upwards, which corresponds to the upward inertial movement.
Outlook
Under the current conditions, traders will pay close attention to the level of 1.2150. If the price consolidates above it on the four-hour chart, the pound sterling will continue gaining in value.
Notably, this level acted as resistance. That is why if the price fails to consolidate above it, it may bounce.
Regarding the complex indicator analysis, we see that in the short-term and intraday periods, indicators are signaling buy opportunities amid the current inertial movement.