In yesterday's trading, the pound/dollar currency pair showed quite high volatility. I believe that this course of trading on GBP/USD was influenced by the difficult situation with vaccination in different countries, employment reports from the UK, and the upcoming two-day meeting of the Federal Reserve System(FRS) and subsequent press conference by the Fed Chairman Jerome Powell.
Daily
As expected in yesterday's review of the GBP/USD currency pair, the market did not immediately understand and began to win back very positive data on the UK labor market. By the way, the reaction of market participants reflected the technical picture for this instrument. As it has been noted many times before, very strong support is held in the area of 1.3630, where there is also a red line of the Ichimoku Tenkan indicator, which strengthened the support level itself. As a result, after the initial and rather aggressive bearish pressure, the mark of 1.3630 was only punctured, after which the pair confidently turned up from 1.3609 and showed a very serious strengthening, ending yesterday's trading at 1.3731. This is above the important and extremely significant level of 1.3700 in the current conditions, however, the support at 1.3744 remained intact yesterday.
However, the bulls in the pound do not think to give up trying to continue the rise of the rate. Today, at the time of writing, the pair has already tested the resistance level of 1.3744 for a breakdown. It can be seen that this level of resistance is strong enough to be overcome on the first attempt. After rising to 1.3757, the pair bounced down as expected. However, at the end of this article, the players will once again mobilize all their forces to increase the exchange rate to break through the resistance of 1.3744. However, taking into account the evening events related to the announcement of the Fed's main interest rate and the subsequent press conference of the head of this department, Jerome Powell, it is hardly safe to assume how today's trading will end. One thing is for sure: buying on a breakout of a strong resistance level is very risky. But if today's session closes significantly above 1.3744, however, we will talk about this in tomorrow's article on the GBP/USD currency pair.
H4
As expected in yesterday's article on GBP/USD, the brown support line drawn at the points 1.3450-1.3518 withstood the pressure of the bears and coped with its function, sending the pair up. I would like to draw your attention to the fact that the British pound once again demonstrates excellent technique, the rebound, and subsequent growth occurred exactly from the brown support line. At the end of the article, after trying to break through the resistance of sellers at 1.3744, the "British" turned to decline. If the downward trend of GBP/USD continues and the quote reaches the areas where the 50 MA and 89 EMA pass, as well as the brown support line (this is the price zone of 1.3665-1.3630), then you can try to buy the British currency. It is trying to continue moving in the north direction. You can try buying from current prices, but with very small targets, because the main and strongest movement will begin in the evening, after the Fed decides on rates, and during Jerome Powell's press conference. If the current four-hour candle retains its current shape and is a reversal, you can sell short with the targets indicated in the buy zone. Why not?
