GBP/USD. January 24th. Results of the day. Brexit: new negotiations between the EU and the UK?

4-hour timeframe

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The amplitude of the last 5 days (high-low): 169p - 136p - 80p - 119p - 138p.

Average amplitude for the last 5 days: 128p (115p).

The British pound sterling on the penultimate trading day of the week, January 24, was minimally adjusted, keeping the upward trend. At the international economic forum in Davos, Austrian Chancellor Sebastian Kurtz said that Europe is ready to meet London, because it does not want a "hard" Brexit, but Britain must meet the EU. In fact, such a statement means that the "hard" Brexit is not needed by anyone, and the parties will bargain and negotiate until they agree or someone has patience. Thus, the March 29 date is nothing more than a formality. It can easily be changed to December 29, for example. Meanwhile, the political crisis is developing in the United States, Trump refuses to resume the work of public services if his project to build a wall on the border with Mexico is not approved by Congress. The "shutdown" as a result continues, but, much to our amazement, the US dollar only fell against the pound sterling. Given all the problems of Great Britain, it would be more logical to see the growth of the dollar. From a fundamental point of view, the situation on the pound is now extremely complicated, and traders have to decide which country is worse and where and what prospects can be traced. So far, the pound is winning, but it seems that it will not last long. A clearer picture in technical terms: the uptrend is preserved, corrections are ideally signaled by the MACD indicator, so market participants only need to follow the trend.

Trading recommendations:

The GBP/USD currency pair has started the minimum correction. Turning the MACD indicator back to the top will signal the completion of the correction and it will be possible to open new longs with the target of 1.3170.

It is recommended to consider Sell positions after overcoming the critical line and, preferably, the level of 1.2914. In this case, it will be possible to trade for a fall in small lots with the first goal line Senkou Span B.

In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.

Explanation of illustration:

Ichimoku Indicator:

Tenkan-sen-red line.

Kijun-sen – 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:

Red line and histogram with white bars in the indicator window.

The material has been provided by InstaForex Company - www.instaforex.com