4-hour timeframe
The amplitude of the last 5 days (high-low): 49p - 91p - 77p - 60p - 82p.
Average amplitude for the last 5 days: 72p (82p).
On Monday, April 15, the British pound sterling is trying to resume its upward movement, but so far it has again stumbled into a barrier in the form of the Senkou Span B line and the resistance level of 1.3125. Thus, the pair's further upward movement depends on overcoming these resistances. In recent days, the volatility of the GBP/USD pair has greatly decreased, as important news on the Brexit topic has ceased to be available to traders. Moreover, the whole topic of Brexit is put on hold, since it is currently unnecessary to be in a rush with the votes and the adoption of one or another option. There will be no "hard" Brexit in the future, and that is what traders are interested in the most. In the future, it is even possible to hold a second referendum in the UK, which Theresa May does not want. However, if she never succeeds in coming up with anything new, she will have to use any alternative options, since the EU will unlikely agree in constantly postponing Brexit terms. Market participants now only have to trade in a narrow side channel, content with small transactions with the minimum possible profit, or expect the completion of a low-volatility side section. Formally, hopes for an upward movement will appear if the pair succeeds in overcoming the level of 1.3125, but even in this case the probability of this is not very big. No important macroeconomic reports have been received from the UK today.
Trading recommendations:
The GBP/USD currency pair failed to overcome the Senkou span B line and is still located inside the Ichimoku cloud. Now there is a flat on the pair and we recommend that you wait for its completion before re-opening any positions.
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