4-hour timeframe
The amplitude of the last 5 days (high-low): 74p - 29p - 23p - 91p - 76p.
Average amplitude for the last 5 days: 59p (51p).
On Thursday, April 25, the British pound sterling completed the support level of S2 - 1.2888, but is unlikely to stop there. Most likely, the British currency is waiting for a small correction tomorrow, after which the downtrend will resume. In the past few months, we have been tirelessly writing that there is no fundamental reason for the British currency's growth. For a while, the pound was growing solely on expectations that the European Union, the British Parliament and Theresa May would be able to negotiate a "deal" on Brexit, but now that these hopes have collapsed, the pound is not holding anything anymore. In the next 6 months, we believe that in general, the pound will continue to fall. Of course, not without corrections and periods of growth. Even if it's from the United States, it is now quite difficult to expect positive information for the pound. The Fed does not plan to reduce rates in the near future. The country's economy, despite long conversations about a possible recession, continues to feel stable. Macroeconomic reports can not be called a failure as a whole, but Britain continues to lose large sums of money due to Brexit, as a result of which economic indicators are falling, which creates an even greater pressure on the pound. Not a single important report was received from Britain this week, nor will there be one tomorrow. Even on Brexit, there is no new information, except rumors about a possible new vote of no confidence in Theresa May. On the 24-hour chart, the pair broke through the Ichimoku cloud, which reinforces the current "dead cross" and again contributes to the downward movement of the pair.
Trading recommendations:
zThe GBP/USD continues to move downwards. Thus, sell orders with targets of 1.2888 and 1.2828 remain relevant. It is recommended to hold them until the MACD indicator turns upward, which will indicate a correctional turn.
Long positions with small lots are recommended to be considered not earlier than overcoming the Kijun-sen line with a goal of the Senkou Span B line. However, bulls may need fundamental support, which still does not exist.and not a single important report has been received this week, nor will there be one for tomorrow.
In addition to the technical picture, one 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.
Chikou Span - green line.
Bollinger Bands indicator:
3 yellow lines.
MACD Indicator:
Red line and histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com