4-hour timeframe
The amplitude of the last 5 days (high-low): 134p - 192p - 211p - 72p - 93p.
Average amplitude for the last 5 days: 140p (134p).
The British pound sterling on Wednesday, January 9, slightly increased against the US currency, but not as much as the euro added. This suggests that the reaction of traders in the form of purchases of the european currency was largely due to the publication of a strong report on unemployment in the eurozone. But then, why not move up to the beginning of the European trading session? This judgment forces us to pay attention to Trump's speech, his words about the "humanitarian crisis" and the very fact that the US government has been inactive for 18 days. It seems that the Americans negatively perceived the information from the US President, as well as the lack of a decision on the wall on the border with Mexico, which, in fact, does not allow the government to resume work. It should also be noted that the pair, unlike the EUR/USD, failed to overcome the important resistance area of around 1.2800. Taking into account the beginning of the debate on Brexit in the British Parliament, which will end with a vote on the relevant bill on January 15, traders clearly do not want to buy the British pound on the eve of this event. Even despite certain problems of the United States that have arisen recently. Thus, the technical picture of the GBP/USD pair may differ from the EUR/USD pair over the next few days or even weeks, as the fundamental factors affecting the exchange rate are different. From a technical point of view, the correction for the instrument continues, as the MACD indicator is still downward.
Trading recommendations:
The GBP/USD currency pair continues to be adjusted, so new long positions can be opened after the MACD indicator is turning upwards with the target resistance level of 1.2877.
Sell positions are recommended to be considered no earlier than the price fixing below the Ichimoku cloud. In this case, the downward movement is expected to resume with the support level of 1.2499 as the target, which remains the local low of the pair.
In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.
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