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After a strong fall that occurred last week, the British pound began a corrective pullback to its previous decline on the first day of the five-day trading week, which is quite natural from a technical perspective. At yesterday's auction, in the absence of important macroeconomic statistics from the United Kingdom and the United States of America, the auction was held exactly according to the corrective scenario. As a result, the pair rose on Monday and ended trading on June 21 at the level of 1.3929.
Daily
As emphasized in yesterday's article on GBP/USD, the price area near 1.3930 could be considered a good option for opening short positions. It was noted that 1.3930 is traditionally a strong technical level, and depending on the situation, it can perform both support and resistance. In the current case, it was the resistance that was met in this area. Although the pair finished yesterday's trading within the Ichimoku indicator cloud and slightly above the black 89 exponential moving average, the rate can not yet hold on to the heights reached yesterday and today. At the time of writing, it is trading with a slight decline slightly below another important level of 1.3900. However, the main event of today is still ahead, so anything can happen, and we will consider both options for a possible price movement. Let me remind you that today, at 19:00 London time, the Chairman of the US Federal Reserve, Jerome Powell, will deliver a report on monetary policy. It is an important event that will have a significant impact on the dynamics of all dollar pairs. If the correction growth continues, the pound/dollar pair may reach the 1.3984 mark on the rise, where the red line of the Ichimoku indicator Tenkan passes. It will happen if Jerome Powell changes the recent hawkish rhetoric to a softer one. If the head of the Fed maintains a hawkish attitude, the pair's corrective rise will most likely be completed, and it will resume its downward trend, with the targets being 1.3860, 1.3830, 1.3800, and possibly lower prices.
H1
Looking at this period, we see an orange 200 exponential moving average under the key mark of 1.4000, which can turn the course down. Thus, the points for opening short positions are represented as follows: 1.3930, 1.3960, and 1.4000. There are also options for buying, but opening long positions in the current conditions seems to be a more risky positioning. However, for those who want to buy the pound, I recommend looking at the already indicated prices of 1.3860, 1.3830, and 1.3800. At the same time, I would like to remind you that this week the next meeting of the Bank of England will be held, following which a decision on rates will be made with accompanying comments. In this regard, I do not recommend setting large goals for open positions. Things can change very quickly. It means the direction of movement of the quote.
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