The pound showed a great growth yesterday, and it was just a little short of breaking the 1.4000 mark, although it skipped 1.3900 without seeming to notice. However, we should not be so happy for the British currency, as its growth took place amid a completely empty macroeconomic calendar, and there was no news either. In general, it looks as if this is purely speculative growth, which is not supported by anything at all. At the same time, the growth is quite impressive. So, if there is no positive news in the near future that can somehow support this unprecedented jump, the pound must necessarily fall sharply in price.
Nevertheless, it seems that the pound has received some support in the form of data on the labor market, which will allow it to hold its positions for some time. Most importantly, the unemployment rate fell from 5.0% to 4.9%, which was a pleasant surprise, since the unemployment rate was expected to rise to 5.1%. In general, everything is pretty good. However, the growth was so significant that the unemployment rate alone is clearly not enough. This, at most, will give the pound a little more time to wait for something more substantial, but it is not yet clear whether it will wait for such positive news.
Unemployment rate (UK):
The GBP/USD currency pair showed high activity during the last trading day, as a result of which the local maximum of April 6 - 1.3917 was broken, and after that the psychological level of 1.4000 was touched.
The market dynamics, after a long stage of slowing down, again showed high activity, which led to an acceleration and, as a result, abundant attention from speculators.
If we proceed from the current position of the quote, we can see that the area of the psychological level of 1.4000 puts pressure on long positions, which leads to their reduction.
Considering the trading chart in general terms, the daily period, market participants here are on the verge of resuming the initial medium-term trend. In this situation, we can assume that the level of 1.4000 will all affect buyers, which will lead not just to a slowdown, but to a pullback, with the priority prospect of 1.3950.
The greatest activity on the part of sellers should be expected after keeping the price below 1.1950, for a four-hour period.
From the point of view of a comprehensive indicator analysis, it can be seen that technical instruments on the hourly and daily periods signal a purchase, due to the rapid upward movement of the price.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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