4-hour timeframe
The amplitude of the last 5 days (high-low): 94p - 75p - 126p - 182p - 126p.
Average amplitude for the last 5 days: 121p (118p).
In the coming days, the British pound sterling may strongly "fever". The fact is that the passions around Brexit continue to heat up. Theresa May's rhetoric has changed, now she believes there are three scenarios. Exit from the EU according to its plan, exit from the EU without any agreement and refusal of the Brexit procedure. Previously, her speech featured only two options. Now the British Prime Minister admits that Brexit may not exist at all, and accuses "some parliamentarians" of trying to fail Brexit. Meanwhile, the European Court will make a final decision on whether the United Kingdom can unilaterally cancel the effect of Article 50 of the Lisbon Treaty, which she herself has activated. According to preliminary information, it can. The final decision is on December 10. And on December 11, there will be a vote in the UK Parliament. These days, the pair can be thrown from side to side, and volatility can increase dramatically. In any case, for the pound the hour is approaching X. And now hardly anyone can say with a high probability how this will end. Today, the pound shows growth, but this growth is restrained and clearly does not mean a new uptrend. Rather another round of corrective movement. Moreover, until December 10-11, the pair may go into flat, high-volatility flat. Traders clearly do not want to open large purchases or sales on the eve of such a serious event, which leads to the absence of a bright direction of movement.
Trading recommendations:
The GBP/USD currency pair has started a new round of correction within the downward trend. Therefore, new shorts will be relevant no earlier than fixing the price below the critical line with the target of 1.2693. Be more cautious when opening any transactions in the next few days are very important.
Buy-positions are recommended to be opened not earlier than overcoming the Ichimoku cloud with the target of 1.2888. However, as in the case of shorts, in the coming days it is recommended to trade with caution.
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.
The material has been provided by InstaForex Company - www.instaforex.com