4-hour timeframe
The amplitude of the last 5 days (high-low): 212 p-191 p-307 p-118 p-90 p.
The average amplitude for the last 5 days: 184 p (190 p).
The British pound on Tuesday, November 20, continued to trade near the critical line, but failed to work it out. But now there are signs of traders' desire to start selling the pair. From a fundamental point of view, this is logical. Especially in the light of the statement of the Prime Minister of Spain Pedro Sanchez that the country can block Brexit in the form in which it is presented now. The subject of dissatisfaction with Spain is the uncertainty in the negotiations with the UK regarding Gibraltar. Sanchez noted that the future of Gibraltar should be discussed between Spain and the UK, not between the EU and the UK. So we have a new problem that could interfere with Brexit. At the same time, the media continues to exaggerate rumors that Theresa May will be dismissed. First, opponents of the policy of Theresa May have already issued a vote of no confidence, but did not collect sufficient signatures, which prevented the procedure of the prime minister's resignation. Second, a Parliament in which the majority does not belong to the Conservative Party can abandon the May plan, which would mean a complete failure. The chair under the prime minister continues to sway in all directions. From a technical point of view, now we see only one option – a new fall of the British pound. If, of course, during this week here is no positive information on the topic of Brexit. Other topics for the British pound, such as macroeconomic statistics, now have no special meaning.
Trading recommendations:
The GBP/USD currency pair may complete the upward correction. A reversal of the MACD indicator down may signal the opening of a new sell-positions for the support level of 1,2672. There may not be a rebound from the critical line.
Buy orders did not become relevant, so overcoming the Kijun-sen line did not happen. Therefore, the bulls are still left with nothing, and the fundamental background is not on the side of the British pound sterling.
In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.
Explanation of illustration:
Ichimoku Indicator:
Tenkan-sen-red line.
Kijun-sen – blue line.
Senkou span a – light brown dotted line.
Senkou span B – light purple dotted line.
Chikou span – green line.
Bollinger Bands Indicator:
3 yellow lines.
MACD:
Red line and histogram with white bars in the indicator window.
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