4-hour timeframe
The amplitude of the last 5 days (high-low): 23p - 91p - 76p - 51p - 69p.
Average amplitude for the last 5 days: 62p (54p).
On Monday, April 29, the British pound sterling continues to adjust, but there is low volatility again, not more than 40 points during the day. Two price rebounds from the critical line predict the resumption of a downward trend. But there is nothing special to say in fundamental terms. Reports from the US did not cause any reaction from market participants. Mark Carney's speech also did not affect the movement of the currency pair. Tomorrow will also be a boring day for the pound/dollar pair, since there are no interesting reports that are expected from the UK and the United States. In general, in the coming days, instrument volatility may again be low, which is clearly not conducive to increasing the activity of traders in the market. From a technical point of view, the resumption of a downward trend is very likely. That is, the pound sterling can move well below the lows of the previous week. Meanwhile, Michel Barnier said that the first week of May could be crucial for the future of Brexit. He said that he was waiting for the results of negotiations between Theresa May and the Labour Party, which, if successful, could add a significant number of votes in the new, fourth in a row vote on the Brexit "deal" and ensure its adoption by Parliament. Thus, both the European Union and Theresa May understand that the only option to accept the current version of the "deal" is to get the necessary number of votes. The question is: will Labour make a deal with Theresa May and what will the prime minister promise in return?
Trading recommendations:
The GBP/USD currency pair continues its upward correction. Therefore, sell orders with a target of 1.2848 remain relevant at the moment, but they should be opened after the current correction is completed, there has already been a rebound from the critical line.
Long positions in small lots are encouraged to be considered in case one has overcome the Kijun-sen line with the first targets, a resistance level of 1,2998 and the Senkou span B line.
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