Although there was some activity in the market yesterday, it ultimately led to nothing. In general, the market was stagnant, largely due to the absence of economic releases. Moreover, the media is solely focused on the Palestinian-Israeli conflict, which has erupted with unprecedented intensity. And it seems that the situation will not change today either. The calendar is basically empty, and leading media outlets are busy searching for the culprit behind the tragic events in the Middle East.
Despite relatively high volatility, the GBP/USD pair remains near Friday's levels. The range is defined by the levels of 1.2150 and 1.2270.
On the four-hour chart, the RSI indicator is moving in the upper area of 50/70, which corresponds to the corrective cycle.
On the same chart, the Alligator's MAs are headed upwards, which also aligns with the corrective trend.
OutlookIn order to extend the corrective phase, the price must consolidate above the level of 1.2270. In this case, the price may gradually rise towards 1.2350.
The bearish scenario will come into play if the price returns below the level of 1.2100. In this case, traders might consider retesting the local low, with the lower area of the psychological level of 1.1950/1.2000 acting as support.
Complex indicator analysis indicates a corrective phase in the short-term and intraday periods. Meanwhile, in the mid-term period, the indicators are reflecting a downward cycle.