After yesterday's trading session, the dollar rally slowed down and the dollar index moved away from the recently reached peaks.
Released today in the UK, the basic index and the volume of retail sales showed better-than-expected results. Against this backdrop the British pound was able to strengthen versus the dollar.
Today we also expect a series of macroeconomic indicators from the US, which may again send the dollar to update the new highs.
At the moment, the RSI is directed upwards and the MACD has come out of the histogram, so we can consider it as a signal for purchase. However, the top chart continues the downward trend. Therefore, it is worthwhile to be careful when taking long positions.
Our pair found a new level of support near the 1.27 mark and turned from it.
Therefore, we recommend that you wait for the correction to finish and look for points to enter short positions, after a confirmation by technical indicators.
