29.04.202110:32 Forex Analysis & Reviews: Analysis and forecast for GBP/USD on April 29, 2021

The main event of the entire trading week was the results of the extended two-day meeting of the US Federal Reserve System (FRS). I want to note right away that there was no miracle. As expected, the Open Market Committee kept the monetary policy parameters unchanged. In particular, the refinancing rate remained in the range of 0.00%-0.25%. Also, the programs for buying Treasury bonds and mortgage-backed securities, which will maintain their monthly volume of $ 80 and $ 40 billion, respectively, have not changed. During his press conference, Fed Chairman Jerome Powell drew attention to the fact that the current increase in inflation is probably due to temporary factors, and the full recovery of the US economy will depend on the success of the program to vaccinate the population against the COVID-19 pandemic, as well as on incoming macroeconomic reports. If the US economy has fully recovered from the coronacrisis, the US Central Bank will begin to change its monetary policy in its tightening direction. Quite naturally, with such soft rhetoric of the Fed, the US dollar was doomed to weaken against its main competitors. It is what happened yesterday in the pair of the "American" with the British pound.

Daily

Despite the initial decline in GBP/USD, which occurred in the first half of yesterday, subsequent events have radically changed the course of trading on the pound/dollar currency pair. Having found strong support at the same very strong technical level of 1.3860, the pair began to turn up confidently. The events related to the Fed only strengthened the upward dynamics of this trading instrument. As a result, the session ended on April 28 for the pound/dollar pair at 1.3932, which is higher than the resistance of 1.3927, where the maximum trading values were shown on April 26. Today, at the time of writing, GBP/USD indicates impressive growth, trading near 1.3963. If things go on like this, the bulls in the pound will be doomed to another meeting with a strong and so far impassable psychological and technical level of 1.4000. To be more precise, the key resistance zone is 1.4000-1.4015.

However, as we all know and understand, there are no impassable levels, lines, and other obstacles in the market. It's all a matter of time. At the same time, the more often the quote comes to a particular level, the higher the chances that this time it will still be broken. And here again, I would like to draw attention to the tendency of the "Briton" to grow when each short-term decline is used to buy sterling. It once again underlines the seriousness of the players' intentions to increase the rate. However, moving on to the trading recommendations and considering the strength of the resistance zone of 1.4000-1.4015, I recommend that you carefully observe the price behavior in this area. If there are reversal patterns of candle analysis on the daily or smaller charts here, this will be a signal to open sales so far with the nearest targets near 1.3930. From here, you can also plan purchases, the technical basis for which will be a pullback to the resistance level of 1.2927 broken the day before. Given yesterday's soft tone of the Fed and the current weakness of the US currency, I still consider buying GBP/USD as the main trading recommendation.