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Yesterday, there was a clear confirmation that the pound is at the mercy of speculators. The market was eagerly awaiting the publication of the European Medicines Agency's opinion, and the long wait had thrown speculators off-balance. As a result, the pound began to actively decline right in the middle of the trading day. When the results of the work of the special commission were finally published, the market did not react at all. The thing is that, from the point of view of the markets, it was published quite late. The European session was definitely closed. All the speculators have already gone home. Although the content of this very report completely coincided with expectations. The benefits of the AstraZeneca vaccine far exceed all the possible negative consequences of its use. So, the pound declined solely on emotions. Waiting too long has thrown everyone off-balance.
The meeting of the Board of the Bank of England went completely unnoticed, which is not surprising in general. No one doubted that the Bank of England would leave everything as it is, and not even make any statements about future plans. And so, it happened. By and large, all the difficulties in the economy are associated exclusively with the coronavirus pandemic, at least that's what the official press release says. Of course, the Bank of England could not ignore the issue of raising the refinancing rate. But the estimated dates for this significant event have not been determined in any way. It has only been said that someday this will definitely happen.
The GBP/USD currency pair once again rebounded from the psychological level of 1.4000 during the past day, as a result of which the pound sterling headed towards the coordinate of 1.3895, where there was a slight stagnation.
The market dynamics is showing signs of acceleration, but the value of daily activity is still below the average level. It is worth considering that speculative interest is shown from time to time in the market, which is reflected on the chart in the form of impulsive price changes.
If we proceed from the current location of the quote, it will be seen that the downward interest set a day earlier still takes place in the market, which means that sellers still have a chance for a further decline.
Considering the trading chart in general terms, the daily period, it is worth highlighting the correction move from the peak of the medium-term trend of 1.4224, in the structure of which the current quote moves.
In this situation, one should not exclude a possible downward move in case the price keeps below 1.3890 in a four-hour period. With this market development, the value of the British currency may weaken in the direction of 1.3860-1.3830.
From the point of view of complex indicator analysis, it can be seen that there is a neutral signal for the hourly and daily periods, which can lead to a downward interest as a result. Minute periods are already working on a downward course, signaling a sale.
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