The main fundamental event of yesterday for the GBP/USD currency pair was the publication of the PMI index in the UK services sector. I would like to note that this indicator exceeded the expectations of economists and provided the British pound with good support. Today at 09:30 London time, data on the index of business activity in the construction sector will be received from the UK. At 14:45 (London time) and 15:00 (London time), reports on the index of business activity for the services sector from Markit and business activity in the services sector from the Institute of Supply Management (ISM) are expected to be published from the United States, respectively. Now we can proceed to the consideration of the price charts of the pound/dollar currency pair.
Daily
So, as a result of yesterday's growth, trading on GBP/USD ended at 1.3841. It is characteristic that the red Tenkan line of the Ichimoku indicator, which yesterday blocked the pair's path to further growth, is currently breaking through. At the moment of writing, the pair is trading near 1.3893 and is approaching the important technical level of 1.3900. The closing of today's session above this mark and the black 89 exponential moving average, which passes at 1.3913, will undoubtedly strengthen the bullish sentiment for the pair. Moreover, it will open the way for the quote to the area of 1.3950, where the lower limit of the daily cloud of the Ichimoku indicator passes. For the bears on the pound to take control of trading, an alternate breakdown of the levels of 1.3785 and 1.3730 is necessary. At the same time, the breakdown of the last mark will further increase the pressure on the pair and send it to lower prices, which we will designate after the breakdown of 1.3730. Although the possible growth of the pair will still be corrective, the technical picture for GBP/USD does not exclude the continuation of the upward scenario. And given that the pound loves to conduct deep corrective pullbacks, the growth can be quite impressive. However, it is still too early to talk about this. Let's wait.
H1
As you can see, on the hourly chart, the pair has passed up all three used moving averages of 50 MA, 89 EMA, and 200 EMA. Now, it intends to roll back to the broken moves. If this happens, then with a short-term decline to the price zone of 1.3870-1.3840 and the appearance of bullish candlestick analysis models here, a signal will appear for buying the GBP/USD pair at lower and attractive prices. If we recommend selling, then the nearest of them can be tried on attempts to break above 1.3900 and the appearance of bearish reversal candles. After an unsuccessful attempt to pass up the mark of 1.3900. I recommend looking for higher prices for sales after reaching the levels of 1.3930, 1.3950, 1.3975, and 1.4000. Of course, this will be possible only if the market provides the listed price values. In the meantime, there are no other more or less technically sound and intelligible trading ideas for the GBP/USD pair.
