4-hour timeframe
The amplitude of the last 5 days (high-low): 88p - 101p - 57p - 117p - 118p.
Average amplitude for the last 5 days: 96p (95p).
The British pound sterling quite unexpectedly rose against the US currency on the first trading day of the week. However, we have repeatedly mentioned the fact that the pound has been growing in recent months, and even years, solely on technical corrections and rumors. Even today, no positive reports for the British pound have been published. US retail sales reports were positive. No new and optimistic information on Brexit has been made available to traders. Nevertheless, the pound sterling rose by more than 100 points. Thus, it seems that this is a reaction to expectations over postponing the UK's exit date. Today it became known that the position of the EU is indestructible, Jean-Claude Juncker is not going to hold new negotiations with London, is not going to change the text of the previous agreement and believes that "the ball is on the British side." In the meantime, it was also reported that some members of the Conservative Party had proposed to Theresa May to postpone the vote from March 12 to a later date, warning her about a crushing defeat, unless the Brexit agreement is changed. The Brexit agreement, naturally, will not be changed, because tomorrow it is already March 12. So, if Theresa May again fails to postpone the vote (although what's the point?), then tomorrow it will become known about the Parliament's refusal to accept this agreement. And the day after tomorrow - the refusal to withdraw from the EU without a "deal", and after the day after tomorrow - to postpone the date of the country's withdrawal from the EU.
Trading recommendations:
The GBP/USD currency pair has sharply and unexpectedly corrected to the Kijun-Sen line. Therefore, it will be possible to resume trading for a fall in the event of a price consolidation below the Kijun-sen line with a target of 1.2974.
Long positions can be considered with a target of 1,3166, but in small lots, since the price only slightly exceeded the critical line. A turn of the MACD downwards or consolidation below the Kijun-sen line will signal a manual reduction of longs.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
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:
A red line and a histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com