GBP/USD. 16th of May. Results of the day. Theresa May is asked to resign again

4-hour timeframe

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The amplitude of the last 5 days (high-low): 69p - 57p - 100p - 69p - 97p.

Average amplitude for the last 5 days: 78p (78p).

The pound sterling has stepped into its most terrible stage. A stage of systematic but daily decline. Usually, strong falls are often replaced by strong corrections. The most dangerous thing for any currency is when it loses its positions every day. That is what is happening with the British currency. Meanwhile, Theresa May is dismissed by her own party members. It seems that the prime minister will be able to move Brexit from a "dead center", but no one believes in this, neither party members, nor the Parliament, nor the European Union, nor traders. Theresa May is invited to voluntarily resign immediately after the elections to the European Parliament. If she refuses again, they can put forward a new vote of no confidence. It seems that the chances for parliamentary approval of this vote are much greater than the chances for the adoption of the entire same draft agreement on Brexit from the fourth attempt. There is no information about a breakthrough in the negotiations between the Conservatives and Labour. Accordingly, a vote on June 3 in Parliament may once again turn into a farce. I wonder what will May's reaction be, if the Parliament refuses to accept her version of Brexit for the fourth time? And what will be the reaction of the world community to the fact that Britain had voted 4 times for the same deal? Although the reaction of the world community can already be judged by the statement of the main candidate for the post of European Commission President Manfred Weber, who compared Brexit with the series "Game of Thrones" on steroids. In general, the pound has only one road - downwards. A reversal of the MACD indicator to the top will indicate the beginning of an upward correction, but the indicator may also begin to discharge, since it is already at its lowest position.

Trading recommendations:

The GBP/USD pair continues its downward movement. Therefore, it is now recommended to maintain sell orders opened earlier, with a target of a support level of 1.2717.

Buy orders can be considered in small lots only when the price has been consolidated above the Kijun-sen line with the first target of a pivot level of 1.3044, which is not expected in the near future.

In addition to the technical picture, 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