4-hour timeframe
The amplitude of the last 5 days (high-low): 29p - 23p - 91p - 76p - 51p.
Average amplitude for the last 5 days: 54p (59p).
On Friday, April 26, the British pound also began to adjust, yet at the same time, the volatility of the instrument dropped significantly. Thus, we can expect for a complete correction to the Kijun-Sen line. But even after its completion, it is rather inconvenient to retrain such a weak movement in spite of the downtrend. In the meantime, information appeared on what the UK government has been doing in recent days. It turns out that Theresa May and her team are in full swing in negotiations with the Labor Party. In principle, this is not news but since Brexit is delayed for 6 months, few people expected such zeal from the prime minister right now.
On the other hand, there is nothing left for Theresa May. The European Union has already notified that it is not going to conduct any new negotiations on the "deal", it means that the only option to adopt the relevant law is to collect a sufficient number of votes in parliament at a vote on an agreement with the EU. Thus, we can already assume that we will see another vote on the very same "deal". Most likely, it will be taken this time since now, Theresa May will not bring it up for discussion until she is sure that it will get enough votes. There is also information that the prime minister wants to make a "deal" before the first meeting of the European Parliament of the new convocation. In general, if the "deal" is approved by the parliament, it can support the British pound. Moreover, he may even start to go up in the near future, as traders may again start buying a pound based on expectations of a positive completion of the three-year Brexit procedure.
Trading recommendations:
The GBP/USD currency pair has started an upward correction. Thus, sell orders remain relevant with targets of 1.2888 and 1.2846 but they should be opened only after the completion of the current correction.
Longs in small lots are recommended to be considered after overcoming the line Kijun-sen with the first goal line of Senkou Span B.
In addition to the technical picture, traders 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