4-hour timeframe
The amplitude of the last 5 days (high-low): 191p - 307p - 118p - 90p - 106p.
Average amplitude for the last 5 days: 162p (184p).
On Wednesday, November 21, the British pound sterling stood in one place all day, not knowing where to go. It is rather strange that traders did not even react to the report on durable goods orders in the USA, which frankly failed. All this resembles a lull before the storm, and the fact that the pound did not go up, although the chance was excellent could mean that traders are preparing for massive sales of the pair. Meanwhile, Angela Merkel expressed the hope that the issue of Gibraltar will be resolved on Sunday. Recall that Spain wants to separate negotiations on Gibraltar since the current version of Brexit does not contain any conditions for the legal settlement of possible controversial issues. Also, Spain had previously stated that it could block Brexit if the corresponding changes were not made in the final version of the Brexit document. German Chancellor Angela Merkel fully supports the UK's desire to leave the EU and believes that it will be possible to agree on Gibraltar. Also today, negotiations are scheduled between Jean-Claude Juncker and Theresa May. It is not yet known how they will end, but perhaps it is on the threshold of these negotiations that traders do not want to open new positions for the pair. We remind that voting in the parliament of Great Britain will be of key importance. Since it is the parliament with a high probability that can block Theresa May's plan. In this case, the prime minister of Great Britain will have nothing to do but resign.
Trading recommendations:
The currency pair GBP / USD does not move. Thus, if the MACD indicator turns up, it will mark the beginning of an upward correction. Otherwise, short positions will remain relevant for the purpose of the support level of 1.2672.
Buy orders can be formally considered if the pair overcomes the critical line. However, we draw attention to the fact that at the moment the line Kijun-sen has declined towards the price and not vice versa. Therefore, long positions are possible only in small lots for the purpose of the line Senkou Span B.
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.
Chinkou Span - green line.
Bollinger Bands indicator:
3 yellow lines.
MACD Indicator:
The red line and histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com