GBP/USD. May 29. Results of the day. The main contender for the post of Prime Minister in the UK will appear before the court

4-hour timeframe

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The amplitude of the last 5 days (high-low): 95p – 79p – 86p – 81p – 54p.

The average amplitude over the last 5 days: 79p (94p).

The volatility of the British pound in recent days fell to 50 points per day. There is no news, as in the case of the euro/dollar pair. This refers to the really important news. Today, the most interesting event was the call to the Westminster Court of the main contender for the post of leader of the Conservative party and the seat of British Prime Minister Boris Johnson. The lawsuit against Boris Johnson was filed by private businessman Marcus Ball, who previously collected 200,000 pounds of donations for the trial, which claims that Johnson lied within the Brexit company in 2016 that the country pays the European Union about 350 million pounds weekly. Immediately in 2016, the UK Statistics Agency denied this information. However, now, after three years, a criminal case may be initiated, since the crime may be classified as official. And according to British law, the punishment for such a crime can even serve a life sentence. Ball's lawyers note that the case does not concern Brexit as such. It's about honesty and openness of high-ranking officials. Johnson's defense claims it's a political stunt. If you dig a little deeper, then this version may be true, since Johnson is the main contender for the Prime Minister's chair, as well as the main opponent of "soft" Brexit and "deal" of Theresa May. Johnson himself claims that in fact the UK had to deduct even more than 350 million pounds a week. The pound sterling has not yet responded to this information. However, in the context of medium and long-term prospects, such information is unlikely to help the British pound and support the bulls in the market.

Trading recommendations:

The pound/dollar currency pair overcame the Kijun-Sen line and is trying to resume a downward trend. Therefore, it is now recommended to sell the pound sterling with targets at 1.2604 and 1.2576, before the MACD indicator turns up.

Long positions can be considered very small lots if the price is fixed back above the Kijun-Sen line with the first target level of 1.2734.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

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.

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