The British pound showed a decline at yesterday's auction. In the absence of important macroeconomic catalysts, such dynamics of the British currency can be explained only by the situation with the euro/pound pair, which began to recover from the losses incurred earlier. It has already been repeatedly pointed out that the price dynamics of EUR/GBP may well affect the situation in the main currency pairs with the euro and the pound, particularly the price movement of GBP/USD. It seems that this is what is happening at this stage in time. Let's briefly touch on today's statistics. The day looks far from the most saturated with macroeconomic reports, especially those that can affect the price movement of the pound/dollar pair. Let me remind you that at 15:00 London time, data from the United States on production orders will be released. Later, at 19:00 (London time), Richard Clarida (a member of the Open Market Committee) is scheduled to speak at the US Federal Reserve. Well, now it's time to look at the GBP/USD price charts, assess the situation, and find the best trading options.
Daily
As already mentioned at the beginning of the article, the "British" yesterday slightly declined against the US dollar. However, the bulls were full of desire and strength to resume the growth of the exchange rate and even reached a strong technical level of 1.3930 on the rise. However, this is where it all ended for them. The players failed to overcome this mark for promotion. As a result, a relatively long upper shadow remained at the top, and Monday's closing price was 1.3881. We have to state another unsuccessful attempt to pass up the strong technical mark of 1.3900. However, the bulls for the pound do not lose their presence of mind, and right now, they are again storming this level for a breakdown.
However, given that the 50-simple moving average passes at 1.3932, the task of the players to increase the exchange rate becomes more complicated. And in general, the bulls will have to make every effort to fulfill their function, since at 1.3980, both boundaries of the daily cloud of the Ichimoku indicator pass, as well as the maximum trading values on July 29 and 30. The most important price zone 1.4000-1.4015 is mentioned in almost every review on GBP/USD, so only after a confident consolidation above 1.4015 can we seriously count on the subsequent strengthening of the British currency. There is also a lot to be done for the bear market for the pound. First, it is necessary to update yesterday's lows at 1.3874 and close today's trading under this mark. Well, then you need to go down the red Tenkan line and the blue Kijun line of the Ichimoku indicator.
H4
The four-hour chart shows that the pair is trading in a relatively narrow price range, the exit from which can determine the near-term prospects of GBP/USD. However, everything is not so simple and unambiguous here either. Together with the support of 1.3874, it is necessary to pass down the orange 200-exponential moving average and the blue 50-MA. Something suggests that if this task is completed, it will not be today when there are no catalysts for price movement. On the other hand, a breakdown of the resistance of 1.3980 will send the pair to the key area of 1.4000-1.4015. Since the situation for GBP/USD is extremely uncertain, I suggest pausing and waiting a little while until the technical picture becomes clearer. The recommendation for the pound/dollar pair is to stay out of the market.
