Two factors will have a strong influence on the course of trading. Firstly, Jerome Powell will speak at the US Congress, where he will talk about the main trends in the economy and monetary policy. Congressmen can play a small show and interrogate the head of the Federal Reserve on the subject of fighting high inflation. Why a show? Congress always opposes the growth of the Fed’s discount rate, and there is no other way to fight inflation.

In the course of this performance Powell will play the role of a defensive teenager who seems to be a hooligan, but promises to improve. Congressmen will chide him and say that they are giving him a chance to improve. The show will be over at this point. How will this event affect the value of the dollar? This will probably have a neutral influence on the US currency rate. Secondly, an uptrend in the oil market will have a positive influence on the value of the pound, inasmuch as assets are historically correlated with each other. Investors are actively buying up oil contracts again, insofar as the structural supply deficit has not disappeared anywhere.

Trading recommendation: Buy 1.3800/1.3765 and take profit 1.3880.