Yesterday will be remembered by the world medicine for a long time, and the pound will clearly bear the imprint of reputational losses that are still difficult to imagine. It all started with an unexpected demarche of the European Union countries, which simultaneously began to announce the suspension of the use of the AstraZeneca vaccine due to the growing number of cases of side effects, resulting in even fatal outcomes. The vaccine itself is already constantly accompanied by all sorts of scandals. At first, the developer even had to significantly reduce the dosage. And this is after the start of vaccination. Not to mention the endless complaints about disruptions in the delivery of the doses themselves to customers. But this did not lead to such demonstrative actions in the form of refusal to use it. Thus, it is not surprising that the pound immediately rushed down.
After all, the decision to suspend the use of the vaccine, due to the threat to the lives of patients, will inevitably be followed by a demand for a refund of payments for past and future deliveries. And this is just a huge loss, which will be covered by London. Otherwise, we will have to allow the bankruptcy of the largest national pharmaceutical company. However, just a few hours later, the pound fully recovered all its losses. The European Medicines Agency came to its aid. It quickly issued an official statement that, it turns out, a special commission has been working for a long time to investigate all cases of side effects after the use of the AstraZeneca vaccine, which will complete its work on March 18. The results of this study will be published at the same time, which is quite quickly. But the most important thing is that the European Medicines Agency officially states that the benefits of the vaccine exceed the possible side effects. Both the speed and the latest statement calmed the markets, and the pound quickly returned to the values at which it was before the decision of the European Union to suspend the use of the vaccine.
Since the vaccine issue is now postponed to tomorrow, nothing can distract the market's attention from the meeting of the Federal Open Market Commission. However, it will be much more calm unlike yesterday's events. From a formal point of view, the United States is experiencing an increase in consumer prices with a simultaneous decline in consumer activity. However, retail sales continue to grow. Their growth rate has slowed down somewhat. So, the Federal Reserve has nothing to worry about. Moreover, even the European Central Bank, which is facing a much more serious problem in the form of a catastrophic drop in retail sales with a much lower rate of growth in consumer prices, has not taken any drastic steps. They just blamed it on the coronavirus pandemic. The Federal Reserve will follow suit, and the loudest comment will be that the observed problems in the economy are temporary and are associated with the coronavirus epidemic. So, the meeting will be quite quiet, without having any serious impact.
The GBP/USD currency pair implemented a V-shaped swing pattern during the previous day, which resulted in a price slowdown at the peak of the figure of 1.3877/1.3905. The price fluctuation was accompanied by market speculation against the background of information noise.
The market dynamics has an average daily level, while the characteristic impulse move indicates a high coefficient of speculative operations.
If we proceed from the current location of the quote, it will be seen that the amplitude in the range of 1.3877/1.3905, as before, is taking place in the market.
At the trading chart in general terms, the daily period, it can be seen that there is a corrective move from the peak of the medium-term trend of 1.4224, in the structure of which the quote moves.
In this situation, it is worth determining the prevailing trading interest by holding the price above or below the range of 1.3877/1.3905 for a four-hour period. After that, the work will be carried out in the direction of the price holding point relative to the boundaries of the range.
From the point of view of a comprehensive indicator analysis, it can be seen that the indicators of technical instruments on the minute, hourly, and daily periods are giving a sell signal.
