4-hour timeframe
Amplitude of the last 5 days (high-low): 115p - 68p - 93p - 50p - 106p.
The average amplitude for the last 5 days: 86p (75p).
The currency pair GBP / USD on Thursday, August 9, against a background of an almost complete absence of any macroeconomic information, most of the trading day stood in one place with little volatility. The support level of 1.2852 was tested for strength two times and both resisted. However, we draw the attention of traders to the fact that the correction has not started today. That is, market participants stubbornly do not want not to open longs, but even to shorten shorts. And this means complete disbelief in the British pound sterling. Moreover, the Brexit news at the moment is only one, the fact that there are no new agreements between the EU and the UK. Thus, the faith in the positive outcome of this process in the British falls, as well as the investment attractiveness of the British pound and, in general, the economy of the Kingdom decreases. By the way, we note one more important fact that since April 17, when the last round of the strengthening of the US currency began, more or less significant correction has not happened. The MACD indicator turned upward, which signals a correction, but the indicator reacted to the slightest price reduction and began to discharge. Bollinger bands are directed downward, the indicator of Ichimoku supports a strong "dead cross".
Trading recommendations:
The GBP / USD currency pair worked at 1.2852 and can not overcome it yet. Thus, it is recommended to open new short positions in case of overcoming this level with the targets of 1.2794 and 1.2730.
Orders for a purchase are not recommended now, since the downward movement is quite strong, and there are no signs of an upward correction beginning. And even when they appear, the corrections are very weak.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations to the illustration:
Ichimoku Indicator:
Tenkan-sen is a red line.
Kijun-sen is a blue line.
Senkou Span A is a light brown dotted line.
Senkou Span B - a light purple dotted line.
Chinkou Span is a green line.
Bollinger Bands Indicator:
3 yellow lines.
MACD indicator:
Red line and histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com