4-hour timeframe
The amplitude of the last 5 days (high-low): 112p - 45p - 63p - 72p - 74p.
Average amplitude for the last 5 days: 73p (70p).
Brexit is increasingly overgrown with new details, expectations and forecasts. Today, Britain's Treasury Secretary Philip Hammond held a speech, he said that Brexit without a "deal" would cost the government 90 billion pounds, which would be a crushing blow to the economy. According to Hammond, whoever takes the chair of the prime minister, if he does Brexit without an agreement, he will lead the country to a catastrophe. At the same time, the main candidate for the post of prime minister, Boris Johnson, is ready to offer the EU a free trade option after Brexit. If the EU refuses such a proposal, the UK will be released without any agreement. According to Johnson, if the European Union is serious, then it should begin negotiations. Thus, we see that Johnson is not particularly afraid of Brexit without a "deal". At the same time, the second contender for the prime minister post, Jeremy Hunt, said that the government provides financial assistance worth $25 billion to small businesses, fishermen, farmers, in short, everyone who could suffer from a "hard" Brexit. That is, if it becomes clear that Brexit will be unorganized, then the UK government will "smooth out" customs duties. Interestingly, Philip Hammond has already noted that there is no money for such programs in the country's budget. It is difficult to decide who to believe and believe in the promises of Hunt and Johnson at all. One thing is clear: the uncertainty around Brexit has not decreased one bit. This process is increasingly complicated and confusing. So far, the pound sterling has suffered, which has resumed falling against the US dollar, and the British economy. But these are just flowers in comparison with the blow that can be inflicted in the event of a disordered exit.
Trading recommendations:
The pound/dollar currency pair continues its downward movement. Thus, traders are advised to sell the pound sterling with targets of 1.2591 and 1.2521 before the MACD indicator turns upwards, which will indicate a correctional turn.
It will be possible to buy the British currency when the pair has consolidated above the Kijun-sen line. In this case, the upward trend may resume with the first target of a pivot-level of 1.2713.
In addition to the technical picture 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