4-hour timeframe
The amplitude of the last 5 days (high-low): 54p - 143p - 54p - 98p - 77p.
Average amplitude for the last 5 days: 85p (95p).
The British pound sterling on Wednesday, February 13, corrected to the moving average line but failed to overcome it, which once again indicates the "strength" of the pound and the lack of demand for it. Today in the UK, the consumer price index was published. In monthly terms, in January, it decreased by 0.8%, and in annual terms, it was 1.8%, which is lower than the forecast values. The retail price index was also worse than market expectations. Thus, traders got a new reason to start selling pound sterling again. Nevertheless, we expect the resumption of the downward movement, as there were no fundamental reasons for strengthening the British currency, and the technical picture is also completely on the side of the US currency. As for Brexit, the American concern Ford, which has two factories in the UK, has already notified Theresa May that it is looking for an alternative place for production facilities abroad due to the sheer uncertainty about Brexit. Theresa May herself, according to the general opinion, pulls time. She manages to pull away, the more chances that the voting will be held as close as possible to the date of the country's exit from the EU and politicians will have to choose between the "hard" version of Brexit and Brexit according to the May plan. If the EU refuses to enter into new negotiations, what other option could there be? In general, nothing positive for the British pound in the UK is happening now. As we said earlier, the pound is required now on any decision on Brexit, just not maintaining uncertainty.
Trading recommendations:
The currency pair GBP / USD continues to be adjusted. Thus, it is recommended to open new sell orders if the MACD indicator is turned down with the support level of 1.2828.
Long positions in small lots will become relevant after traders overcome the critical line. In this case, the first target will be the level of 1.2987, but there are still no fundamental reasons for moving up.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of the illustration:
Ichimoku indicator:
Tenkan-sen - the red line.
Kijun-sen - the blue line.
Senkou Span A - light brown dotted line.
Senkou Span B - light purple dotted line.
Chinkou Span - green line.
Bollinger Bands indicator:
3 yellow lines.
MACD Indicator:
Redline and histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com