4-hour timeframe
The amplitude of the last 5 days (high-low): 54п – 117п – 163п – 222п – 104п.
The average amplitude over the past 5 days: 132p (131p).
The British pound sterling on Tuesday also moved on pure technique. New data on the progress of negotiations on Brexit did not appear during the day. At the same time, political crises are brewing in the British Parliament and within the Conservative Party, which borders on scandals. The number of politicians dissatisfied with Theresa May's negotiations with the EU is growing every day. Recall that May does not agree with the terms of Brussels, and her version of Brexit is rejected by the European Union. In general, there is a deadlock, from which, at first glance, it is difficult to find a way out. And since May can not agree with the European Union, the members of the Conservative Party are considering the possibility of removing her from the positions of Party leader and prime minister of Great Britain. The longer there is no progress in the negotiations, the more likely it is that May will leave office before the end of November. It is for this month that the completion of negotiations on Brexit is planned. Of course, the negotiations can be extended in terms of time, but only if progress is visible. If there is no progress, there will be no point in delaying the negotiations. The removal of the leader of the UK from her position can send the pound into a new long fall, as hardly anyone wants to invest in the economy of the country, which can not deal with its leader, where there is no unity in Parliament, but even the majority, and the prime minister in all conceivable and unimaginable ways tries to stay in her chair and is not able to agree on the procedure that was initiated by her.
Trading recommendations:
The GBP/USD currency pair is corrected against the "dead cross" and has almost completed the critical line. Overcoming traders Kijun-sen will provoke a resumption of the upward movement and will become actual purchase orders with targets of 1.3232 and 1.3285.
Shorts can be opened in case of a price rebound from the Kijun-sen line or when the MACD indicator is turned down. This will mean the completion of the correction loop, in this case the target will be level 1.3022.
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.
Chikou 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