4-hour timeframe
The amplitude of the last 5 days (high-low): 100p - 69p - 97p - 64p - 86p.
Average amplitude for the last 5 days: 83p (77p).
More than a day has passed since Theresa May's statement that she is preparing a new "bold" proposal for the Brexit deal to Parliament, but no new information has been received on this matter. Of course, May doesn't want to put her cards on the table ahead of time. On the other hand, once the announcement of this proposal was made, why not lift the veil? Most likely, Jeremy Corbyn is right, who believes that this time the document will not undergo any important additions. He has already managed to declare that his party still does not agree with Theresa May's current version of the deal with the European Union. It turns out that the main opposition party, before the moment when the new proposal was voiced, was already very skeptical of May. This is a significant moment.But from our point of view, there is an even more significant moment for the British pound, namely the complete absence of a correction on Monday, May 20, after five full days of a recoilless fall. Today, when the market could at least take part of the profits on previously opened short positions, it did not do that. This means that traders are waiting for the pound sterling to further fall and do not believe that in the near future the British currency will find fundamental support. The MACD indicator nevertheless turned up, which eloquently displays the picture of a "indicator discharge". Thus, it will be possible to determine the resumption of the downward trend by overcoming the Friday low. If the pair pound/dollar still starts to grow in accordance with the signs of the MACD indicator, then you can consolidate at the beginning of an upward correction.
Trading recommendations:
The GBP/USD currency pair is stuck in one place. Therefore, it is now recommended to maintain sell orders opened earlier, in order to support the level of 1.2653 and reduce them if the pair starts to grow.
Buy orders can be considered in small lots only after when the price has been consolidated above the Kijun-sen line with the first target pivot level of 1.2933, 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