A pair of GBP / USD yesterday surprised many with its volatility, but the most interesting thing was that there were no particular fundamental reasons for this. The strengthening of the pound in the first half of the trading day could have been due to the discussion and subsequent adoption of the Brexit law by the House of Commons of the British Parliament, but frankly we say this is not the news that should have caused such a strong strengthening of the British currency, especially since the bill must still be approved by the House lords Therefore, most likely the growth of the pair was speculative, which is confirmed by the same rapid and strong subsequent decline in the currency pair in strengthening the position of the US currency.
As a result, the GBP / USD pair ended the day only in a small plus, which has been completely won back today by the bears.
Debates on the Brexit bill in parliament are completed, so today we may not see any news on this topic. Given the lack of statistics from the UK, the main focus of market participants is likely to be focused on statistics from the United States, which may be decisive today for price movements.
The technical picture is still clearly indicates a further price reduction, which, however, is now limited to support at 1.3755. Technical indicators are now in favor of this scenario, which are actively falling after the price, as well as a false breakdown of resistance at 1.3850, which we saw yesterday. But we can expect the development of a stronger downward wave only after the breakdown of the level of 1.3755, since if the pair is held above this level, the bulls will have good opportunities to continue the uptrend.
Our recommendations: we give priority to sales that we are looking for near the level of 1.3850.
Review prepared by Fort Financial Services analytical department. Follow our publications!