Yesterday, the pound showed some bearish bias, although it only managed to edge down. The only reason why the pound fell was the change in expectations regarding the timing of the Federal Reserve's monetary decision. In general, the pound could have weakened even further if not for the eurozone's unemployment report, which limited the dollar's potential strength. It appears that the trend towards pushing for the dollar's growth will continue for now. Firstly, due to the lack of significant economic events on the calendar. Secondly, US inflation data is set to be released tomorrow, which is expected to provide clarity regarding the Fed's future course of actions. However, inflation forecasts are not particularly encouraging, as consumer price growth rates could either remain unchanged or even accelerate, according to the largest investment banks. Therefore, the pound will likely lose ground, albeit at a modest pace.

The GBP/USD pair has slowed down its upward cycle near the upper band of the sideways channel at 1.2600/1.2800. As a result, the volume of long positions decreased, leading to a price reversal.

On the four-hour chart, the RSI downwardly crossed the 50 middle line, thus reflecting bearish sentiment among traders.

On the same time frame, the Alligator's MAs are intersecting each other, corresponding to a flat phase.

Outlook

Keeping the price below 1.2700 may increase the volume of short positions towards the lower band of the flat at 1.2600. Otherwise, the 1.2700 level could serve as the middle of the sideways channel, acting as support.

The complex indicator analysis revealed that in the intraday and short-term periods, technical indicators suggest a bearish bias in the structure of the sideways channel.