4-hour timeframe
The amplitude of the last 5 days (high-low): 80p - 58p - 64p - 96p - 81p.
Average amplitude for the last 5 days: 76p (86p).
Sometimes political games start to look ambiguous and raise many questions. It is obvious that ordinary citizens see only the "tip of the iceberg" of all political processes in any country. At the same time, any government shows the "picture" so that the population clearly understands the vector of political actions. In the UK over the past three years, there have often been questions to the government, which is not something about not being able to bring an end to Brexit, but that they cannot even come to a common opinion on which scenario it should be implemented. One gets the feeling that such a "hanging" state is beneficial for the UK government. How it can be beneficial is only known to the government itself. However, a long time ago, it was clear to any ordinary citizen that Theresa May's deal does not suit the Parliament. That the EU leaders are not satisfied with the proposal to remove the "backstop" mechanism from the current deal. And what do we have in the end? Boris Johnson assumes the post of prime minister and immediately declares that in order to conclude an agreement with the European Union, Brussels must make concessions on the issue of the North Irish border. But the European Union did not take any steps towards new negotiations. Brussels has been saying for several months now that the current version of the agreement is the best that it can offer. Immediately after this controversial speech by Johnson, the European Union once again makes an official statement that there will be no new negotiations. This statement is not made by just "some" member of the European Commission, but by Jean Claude Juncker, its head. And what does Johnson answer him literally in 2 days? Johnson reports that in order to sign a new agreement, the European Union must abandon the "spare mechanism" at the border between Northern Ireland and Ireland. As a result, traders more and more begin to regard the whole situation as some kind of pun, and in the meantime the pound sterling continues to calmly fall, because there is simply nothing left for it.
Trading recommendations:
The pound/dollar currency pair resumed the downward movement. Therefore, it is now recommended to continue selling the pound sterling with the goal of a support level of 1.2303.
After the pair has been consolidated above the critical line, it will be possible to buy the British currency, however, with extreme caution and small lots. The first goal is the 1.2591 level.
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