Good day, dear traders!

In the absence of important macroeconomic indicators from the United Kingdom and the United States, the price dynamics of the GBP/USD currency pair is mainly determined by technical factors. At the same time, it is worth mentioning the events that are planned for today. Whether they will affect market sentiment is another matter. It has been repeatedly noted that recent market participants do not pay attention even to such important releases as data on the US labor market and the minutes of the meeting of the Federal Open Market Committee (FOMC).

However, today at 15:00 (London time), the Fed-Richmond production index will be published, at 17:30 (London time), FOMC member James Bullard will give a speech, and at 19:00 (London time) the Fed will publish an economic review of the regions "The Beige Book".

Here, perhaps, are all today's events that may affect the movement of the pound/dollar pair. Now it's time to move on to the technical picture of GBP/USD, and let's start with the results of yesterday's trading.

Daily

As noted earlier, the downward scenario lost its relevance after the support level of 1.2165 kept the quote from further movement. After that, the pair turned to the north and showed quite a decent strengthening yesterday.

So, during yesterday's growth, the GBP/USD quotes broke through the sellers' resistance level at 1.2294, a very important mark of 1.2300, and then went up from the Ichimoku indicator cloud, closing Tuesday's trading at 1.2329. At the same time, the previously indicated goal at the top was reached at 1.2357, and the maximum values of yesterday's session were shown at 1.2362. As you can see, the Kijun line played the role of strong resistance and threw the pair down, but the rebound is not very significant.

It should be noted here that quite often volatile and speculative sterling demonstrates an excellent technique. Even now, at the moment of writing this article, the current decline can be regarded as a pullback to the significant mark of 1.2300, the broken resistance level of 1.2294 and the broken upper border of the Ichimoku cloud. For another proof of its technicality, the pair needs to turn around from the current values and resume yesterday's growth. This will be evidenced by the breakdown of the Kijun line and the sellers' resistance at 1.2362.

If the bulls on the pound manage to do this, the pair will head to the area of the 24th figure, and the closing of trading above 1.2400 will open the way to the subsequent growth of the quote. If the mood changes and the upward momentum fades, the pound/dollar will fall to 50 simple moving average, which passes at 1.2285. Closing the day's trading below this level will signal a false breakout of 1.2300 and resistance of 1.2294. With this development, the downward dynamics will have a chance to continue, and the nearest target for bears will be the lower border of the Ichimoku cloud at 1.2237. The actual exit down from the cloud will strengthen the position of players to lower the rate, after which the Tenkan line, which runs at 1.2217, will be tested for a breakdown.

H4

On this timeframe, the pair is stuck near the 200-exponential moving average (orange), which still prevents the further movement of the quote in the north direction. The current four-hour candle will be very important. At the moment, it looks like a reversal and is quite capable of returning the GBP/USD to growth. Closing above 200 EMA will further confirm the market's intention to grow. But if the current candle closes at 1.2294, there will be doubts about the further ability of the "British" to strengthen against the US dollar.

H1

Here you can see the strength and value of the average line of the ascending channel, which in this situation acts as support. Aggressive and risky, you can try to buy a pair from the current prices, near 1.2305. If the price briefly and sharply falls below the average line, purchases of the British currency can be considered from the price zone of 1.2265-1.2245, but with small goals, in the area of 1.2290-1.2300.

Given yesterday's growth and a large bullish candle with a closing price much higher than 1.2300, I consider the main scenario to be ascending, and the most relevant trading idea is to buy from the prices indicated above.

Good luck!