24-hour timeframe
A lot of experts, traders and just independent people were waiting for the first month of 2019 to clarify the issue of Brexit. But it never did. Instead of adopting Theresa May's plan, although there was little chance of it initially, Parliament decided to reject it. Instead of sending Theresa May to resign and appoint a new prime minister with perhaps a new Brexit plan, Parliament has decided to leave the head of the country. A second vote on Theresa May's bill will be held today, but the chances that this epic will end today, are once again very little. The most interesting thing is that in the last month the pound shows a stable and even strong growth against the US dollar. We cannot say that something extraordinary is happening in the United States. The economy is still strong, and the record "shutdown" did not, for example, have any impact on the EUR/USD currency pair. Therefore, even now it is quite difficult to explain such a strong strengthening of the British currency. However, as long as the uptrend persists, it is recommended to trade strictly on it, without trying to guess the moment of price reversal downwards. Guessing how the whole Brexit process will end up is not recommended either. Everything will depend on too many factors. There may even be a variant with the cancellation of the decision of the country's withdrawal from the EU. We recommend only one thing: remember that the current upward movement is unreasonable, and be prepared for a new protracted fall of the British pound. The first signs of the beginning of this movement will be visible on the 4-hour timeframe.
Trading recommendations:
As long as the pair retains a pronounced upward trend, it is recommended to trade for an increase. The nearest target is 1,3258. A reversal of the MACD indicator down to indicate the beginning of a correction. Fixing the price below the Kijun-sen line on a 4-hour timeframe will indicate a possible trend change.
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