The pound stayed for a long time, and has demonstrated incredible stability. But yesterday everything changed, and it finally followed the single European currency. That is, to the downside. At the same time, it completely repeated the typical scenario for the last few days for the euro. The British currency stood still during the European session, and after the opening of the US one, it went down. But yesterday, both major European currencies had enough reasons to fall. Although to be precise, there is only one reason. The notorious energy carriers. Just at the opening of the US trading session, publications appeared in the media on the topic that the new block of European sanctions against Russia would include restrictions on coal supplies. We are not talking about a complete ban on imports. It is planned to reduce the volume of deliveries by about 4 billion euros, which is about a third of all coal supplies from Russia to Europe. Naturally, an extremely simple question immediately arises - how does Europe plan to compensate for the falling volumes. Moreover, Europe is already facing an unprecedented increase in fuel prices and inflation. There is no doubt that this decision, if of course it is made, will cause Europe the most serious damage. Including an even greater increase in inflation. The sanctions themselves should be adopted today or tomorrow. And if this issue is delayed, the pressure on the pound will only increase. Uncertainty scares investors the most. But in any case, at least today, the pound will remain under pressure.
The long-playing 1.3105/1.3180 horizontal channel for the GBPUSD pair was broken through on a downward trajectory. This led to speculation in the market, where the pound fell to the area of 1.3060. In fact, the bears tried to return the quote to the support level of 1.3000, playing a 100% corrective move.
The RSI technical instrument moves in the lower area of the 30/50 indicator in a four-hour period, which signals a high interest of traders in short positions.
The Alligator H4 indicator has a primary sell signal after a long intertwining between the moving MA lines. Alligator D1 is signaling a downward trend, MA moving lines are directed to the downside.
Expectations and prospects:
At the moment, the quote has slightly slowed down the downward movement, where the 1.3050/1.3060 area serves as a variable support. Keeping the price below these values is highly likely to lead to a further decline towards the support level of 1.3000. Until then, a rollback to the lower border of the passed flat is possible.
Comprehensive indicator analysis gives a sell signal in the short, intraday and medium term due to the rapid downward movement.
