Hello, dear market participants!

I will not spend time on events from yesterday that are related to the Federal Reserve. I only note that virtually everything was left within expectations. The refinancing rate remained in the range of 1.5% -1.75%, and no significant rhetoric in the speech of the Fed Chairman Jerome Powell occurred.

But today's meeting of the Bank of England has significantly affected the dynamics of the British currency, which has shown significant appreciation. This despite the fact that the British central bank kept the interest rate unchanged at 0.75%. I believe that the Bank of England Monetary Policy Committee (MPC) voted by a majority of 7 against 2 to maintain its basic interest rate at 0.75% in January. The volume of the asset purchase program, 435, was also preserved, which coincided with the forecasts of market experts.

Thus, the pessimistic forecasts of some analysts to reduce rates by 25 basis points did not materialize.

In addition, the EU by a majority vote approved the UK exit from the European Union, and this is another positive point for the pound.

Let's look at the charts of the pound/dollar currency pair to understand what its future prospects are.

Daily

As a result of today's growth, the pound/dollar pair has appreciably increased on the decision and comments of the BoE, and was trading near the significant mark of 1.3100. This level is really very important and, in my personal opinion, is in no way inferior to the psychological mark of 1.3000.

The pound is trying to overcome the level of 1.3107, and if successful, the rise in quotes will continue towards the levels 1.3136 and 1.3146, as the nearest goals of possible growth.

If market sentiment suddenly changes (which is unlikely), the pair will go down to the significant record and psychological level 1.3047, which was repeatedly mentioned in previous GBP/USD reviews. These are the prospects for GBP/USD on the daily timeframe. We are going further.

H4

A circled candle with a long bottom shadow was nothing more than a reversal signal for growth. As you can see, this is exactly what happened. Moreover, it does not matter if this was a reaction of investors to the BoE or not. There is always a reason. There would be a good signal!

In order not to load you with an abundance of information (I think I have already outlined the main ones), I will turn to trading recommendations, if any.

So, the situation on the pound has changed, and now the main scenario looks upward. At the same time I would not recommend buying at the current peak. Too risky, and at any time a correctional rollback may occur.

I think it's time to move on to trading ideas on GBP/USD.

So, the main and very strong resistance of sellers is concentrated in the area of 13171. If near this level on the daily, 4-hour or hourly charts appear reversal signals to decrease, we sell with targets in the area of 1.3120-1.3100. In case of a breakout of resistance at 1.3171 and consolidation above this level, at the pullback we buy with the nearest targets in the area of 1.3220.

Have a successful bid!