Weekly
Well, at the auction on August 9-13, the pound once again confirmed its stubborn British character and unwillingness to move in a southerly direction. Although the Bank of England is still inclined to conduct a soft monetary policy, and the UK GDP data did not exceed economists' expectations, this did not put serious pressure on the pound. At the same time, the long lower shadow of the last weekly candle once again indicates the tendency of the "British" to grow. After the pair fell to 1.3789, the bulls for the pound came to their senses and began to correct the situation actively. As a result, both the closing price at 1.3864 and the last weekly candle of the Doji variety with a long lower shadow are good prerequisites for implementing an upward scenario.
In any case, many factors point to this. However, do not forget that many important, strong, and difficult resistances are at the top. In my opinion, the nearest of them is in the price zone of 1.3900-1.3930. The key moment for the British currency will be the breakthrough of the area of 1.1400-1.4015. Interestingly, this area can be described as historical, psychological, and technical. However, at the moment, the main task of the players to increase will be to pass the mark of 1.3900, slightly above which is the blue Kijun line of the Ichimoku indicator, which will significantly strengthen the resistance near the 39th figure. But for the bears, the nearest benchmark will be the latest lows shown last week at 1.3789. If this level is broken and the trading of the current five-day period closes lower, the bearish sentiment will significantly strengthen.
Daily
The high volatility characteristic of the pound is visible on the daily chart. If the quote showed a reasonably strong decline on Thursday, then an equally impressive growth took place the next day. However, the maximum values at 1.3789 were not shown by chance. As you can see, it is here that the red line of the Tenkan of the Ichimoku indicator passes, which does not allow the course to rise higher. If we consider that there are also black 89 exponential and blue 50 simple moving averages, we can assume that overcoming these obstacles without any strong driver will look very problematic. However, nothing is impossible for the pound.
There are still more questions about the further price movement in the current situation, which may develop into at least a medium-term trend. Given the circled and last weekly candles, I am more inclined to consider purchases after short-term declines. Judging by the long lower tails of these two candles, we can conclude that the market does not want to go down, which means it will grow. We can consider buying GBP/USD after a decline in the area of 1.3850-1.3830, especially if reversal patterns of Japanese candlesticks begin to appear there on this or smaller timeframes. By the way, in the next review of GBP/USD, we will consider them.
