GBP/USD. April 30th. The end of the month. The pound rose by 120 points but the overall picture remains the same

4-hour timeframe

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The amplitude of the last 5 days (high-low): 91p - 76p - 51p - 69p - 42p.

Average amplitude over the last 5 days: 66p (62p).

On Tuesday, April 30, the British pound continues its upward movement against the background of a small drop in demand for the US dollar. Or profit-taking on dollar positions at the end of the month. The Brexit theme frankly faded into the background. This is a good opportunity for the pound to roll back as much as possible up. Unfortunately, the downward trend persists in the GBP/USD pair. Thus, we expect a resumption of the downward movement sooner or later. To consider not only short-term purchases in small lots, but it will also be possible not earlier than the Bulls overcome the Ichimoku cloud. But even in this case, the growth potential of the British currency is not too great. The political crisis in the UK, the lack of a decision on Brexit, complete uncertainty with this very decision, as well as the future of Theresa May - it clearly does not benefit the British currency. Tomorrow will be an important day for the pair, as the outcome of the next Fed meeting will be known. The "pigeon" will be the comments of representatives of the regulator, the greater the chance for the pound to continue to grow. The rate is unlikely to be changed, so all the attention to the press conference.

Trading recommendations:

The currency pair GBP/USD continues its upward movement. Thus, it is now recommended to consider long positions in small lots with targets at 1.2998 and 1.3055.

Short positions will become relevant only after the reverse consolidation of the price below the critical line with the target at 1.2845. Most likely, tomorrow the pair will determine the direction of movement for the next few days.

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:

A red line and a histogram with white bars in the indicator window.

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