Yesterday's trading on the pound/dollar currency pair was quite volatile, which is not at all surprising. In addition to the published minutes of the last meeting of the Open Market Committee of the US Federal Reserve, the speech of the head of the Bank of England, Andrew Bailey, had an impact on the dynamics of the British currency. The chief British banker said that the European Union may set too high a price for the subsequent trade relations between the UK and the EU and the British side should not agree to them.
Daily
However, yesterday's fall in the British currency began even before Bailey's statement, but at the level of 1.3537 (broken resistance), the pair quite predictably received strong support and began to recover the losses incurred before. As a result, a doji candle appeared on the daily chart, which has a small bearish body and a fairly long lower shadow. Usually, such candles signal the unwillingness of the market to further decline and lead to a subsequent increase in the quote. However, at the time of writing, GBP/USD is again showing negative dynamics, trading with a decrease near 1.3583. In my opinion, the main task of the bulls for the pound today will be to finish trading above 1.3600, and even better for the players to increase the rate to finish the session above the level of 1.3630. For bears on the instrument, the first task will be to return the pair to the level of 1.3537 and close today's trading below this mark. In this case, the breakdown of 1.3537 will be called into question, the answer to which will be known on the last trading day of the current week, when data on the US labor market will be published. If you look at today's economic calendar, it is recommended to pay attention to the US data on initial applications for unemployment benefits, the trade balance, as well as the index of business activity in the service sector from the Institute for Supply Management (ISM). To close the fundamental part and move on to the trading recommendations for GBP/USD, I would like to note that yesterday's data from ADP, which is perceived by market participants as a leading indicator of official Nonfarm Payrolls, turned out to be significantly worse than the previous indicator 304 and amounted to minus 123. Such a sharp drop may negatively affect tomorrow's data from the US Department of Employment, which will create additional pressure on the US currency, which is not in the best shape.
H1
If you look at the hourly timeframe, we see that today the pound bears resumed pressure on the quote, but the orange 200 exponential moving average and the level of 1.3563 provided strong support for the pair and returned it to growth. Given the fact that the decline has already been and support has been found, you can try buying the British pound from current prices. For those who trade on the breakdown of levels, I recommend trying to open long positions after updating today's highs of 1.3630, shown in Asian trading, or wait for the true breakdown of this mark and on the rollback to it with the nearest target in the area of 1.3690-1.3700.
