Real data on the US unemployment claims disappointed investors, thus causing a further decline in the greenback. The number of first-time claims should have increased by 3 thousands. In fact, it decreased by 8 thousand. In addition, the number of continuing claims surged by 31 thousand, causing the greenback's depreciation.

US Continuing Claims

Today, the macroeconomic calendar is absolutely empty and traders have to rely only on the pound sterling's overbought conditions. Over the last two weeks, the British currency has added almost 500 pips. That is why the market needs correction. It is quite possible that an empty macroeconomic calendar could become a strong reason for such a movement.

After a short pause near 1.2600, the pound/dollar pair managed to resume its upward correction. As a result, bullish activity jumped, enabling the pound sterling to go on rising.

On the four-hour chart, the RSI technical indicator has approached the overbought area, thus pointing to possible overheating of long positions. On the daily chart, the indicator is hovering in the upper area of 50/70.

On the four-hour chart, the Alligator indicator is pointing to the upward movement, whereas moving averages are heading upward. On the daily chart, the red and green moving averages are intersecting each other. This is a signal of a slower downtrend and ongoing correction.

Outlook

A correctional movement from the support level of 1.2155 led to significant price changes. The pound sterling is expected to reach overbought levels in the near future. Notably, the current rise has become of speculative nature. The area of 1.2670/1.2720 is acting as resistance. If the pair touches these levels, the volume of long positions may drop, thus spurring a slowdown in the uptrend.

According to the alternative scenario, the pound/dollar pair is likely to go on climbing. This signal will be proved if the price consolidates above 1.2750 on the daily chart.

In terms of the complex indicator analysis, we see that technical indicators are signaling buy opportunities on the short-term and intraday periods amid the correctional movement. On the mid-term period, the indicator is also providing buy signals amid the ongoing correction.