So, yesterday, following the results of its two-day meeting, the US Federal Reserve System (FRS) kept the base interest rate at 0%-0.25% per annum. This decision fully coincided with market expectations and therefore did not surprise investors. Nevertheless, in yesterday's trading, the US dollar significantly strengthened against its main competitors. I believe that the reason for this was the updated forecasts for the economy and the press conference of Fed Chairman Jerome Powell. You can learn more about this by reading today's article on the euro/dollar. It is better to pay closer attention to the technical picture of the GBP/USD pair and try to find the most optimal trading options.
Daily
As it has already become clear, at yesterday's trading, the pound/dollar pair fell quite significantly and ended Wednesday's session under the most important psychological and technical level of 1.4000. This drop is a bit out of step with the previous daily candle, which has a fairly long lower shadow. However, such important events as the Fed's decision on rates or Nonfarm Payrolls often break the technical picture for a particular instrument. Yesterday can be attributed to such a factor. Although if you look closely at the chart and understand, it is evident that recently the GBP/USD currency pair has lost its upward momentum. On the chart, I highlighted the maximum values of the previous three days, which once again exposed the inability of the pair to move further north. Separately, it is worth noting once again that the level of 1.4200 became a stumbling block for the bulls in the pound in the current situation, above which, despite repeated attempts, it was not possible to pass. In today's trading, after a reasonably technical pullback to the level of 1.4000 and quite natural resistance that the pair met near this significant mark, the rate turned down again.
At the time of writing, the pound/dollar pair has already entered the limits of the daily cloud of the Ichimoku indicator and is approaching the black 89 exponential moving average. The breakdown of the 89 EMA and the exit down from the Ichimoku cloud will further strengthen the bearish mood and allow us to think about sales after a pullback to the broken lower border of the cloud and the 89 exponential. Moreover, the price zone 1.3930-1.3960 is technically very strong, and, depending on the situation, it performs the functions of support or resistance. I believe that now is the time for the latter option. If this assumption turns out to be correct, then on the pullback to the area of 1.3930-1.3960, it is worth planning to sell GBP/USD. Naturally, this will be considered only in the case of a true breakdown of the 89 EMA and an exit down from the Ichimoku cloud. More attractive prices for selling the British currency should be looked for in the area of 1.4000-1.4015. If you remember, before that, this price area first acted as a strong resistance and then provided support for the pair from further decline. But everything comes back to normal, and now the price zone 1.4000-1.4015 will again act as a sign of resistance. However, given the market sentiment and technical nuances, such an impressive pullback may not happen, so I suggest focusing on the price area of 1.3930-1.3960. Once again, I emphasize that this idea will become relevant only when a true breakdown of the black 89 EMA and the subsequent exit down from the Ichimoku day cloud.
