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The British pound is trading with multidirectional dynamics, consolidating near 1.2130. The GBP/USD pair has been losing its positions in the last two trading days, retreating from local highs since mid-June, which were updated at the beginning of the week.

The growth of the US currency is facilitated by "hawkish" sentiments regarding the future policy of the US Federal Reserve after the publication of optimistic macroeconomic statistics. In particular, on Monday, December 5, investors drew attention to a sharp increase in the Services PMI from the Institute of Supply Management (ISM) in November from 54.4 points to 56.5 points, while analysts expected a decrease to 53.1 point.

The British economy is accelerating its transition to recession. Yesterday's November data on the Construction PMI showed a decrease from 53.2 points to 50.4 points, which turned out to be much worse than the market's expectations of a fall to 52.0 points.

The day before, the British Retail Consortium (BRC) published November statistics on Retail Sales: the volumes year on year rose by 4.1%, exceeding 1.2% in October. Nevertheless, according to BRC experts, the upward dynamics of sales is associated with Black Friday, which took place in November: citizens who fear further inflation growth made the maximum purchases with discounts during this period, but now they can reduce spending during the Christmas holidays. In addition, according to the forecasts of the Confederation of British Industry (CBI), the Unemployment Rate in the United Kingdom at the end of 2023 will accelerate to 5.0% from the current 3.6%, and inflation, which is held at its 41-year peak (11.1%), will begin to slowly correct downward and may reach 6.7%. It is worth noting that the UK has come under intense pressure from skyrocketing natural gas prices following the outbreak of the Russian-Ukrainian military conflict, as well as from the unstable national labor market following the coronavirus pandemic. CBI experts believe that investment in business projects at the end of 2024 will be 9.0% lower than the level recorded before the pandemic, and productivity per employee will be 2.0% lower.

In addition, traders fear that the pound may again be under pressure from rising energy prices amid the onset of the calendar winter and new restrictions on the import of Russian oil by sea from the G7 countries.

Bollinger Bands in D1 chart show moderate growth. The price range is narrowing, reflecting the appearance of ambiguous dynamics of trading in the short term. MACD is going down having formed a new sell signal at the beginning of the week (located below the signal line). Stochastic demonstrates a similar dynamics, signaling in favor of the development of the "bearish" trend in the nearest future.

Resistance levels: 1.2311, 1.2400, 1.2500, 1.2600. | Support levels: 1.2152, 1.2027, 1.1939, 1.1853.