4-hour timeframe
The amplitude of the last 5 days (high-low): 99p - 120p - 119p - 105p - 117p.
Average amplitude for the last 5 days: 112p (110p).
The British pound continues its upward movement. A new portion of rumors that the negotiations are moving forward and the parties, by and large, have only to resolve issues relating to the Northern Irish border, provoked new purchases of the British currency. We focus the attention of traders on the fact that there is still no official information about it. The parties note that they are ready to hold talks on the eve of the EU summit on October 17-18 to completely close the issue of the UK's exit from the EU by November. Thus, in the near future Theresa May or Michel Barnier will have to start sharing official information on Brexit. Recall that the last round of negotiations, according to May, ended in failure. Then came the accusations from both sides. Then the British prime minister was criticized about her "Chequers plan" and possible new concessions to the European Union. But even without these concessions, many in the British Parliament are unhappy with the Brexit option of Theresa May. In general, despite the optimism of the market, there are still plenty of fundamental questions on this topic. From a technical point of view, the upward movement continues, and it should be worked out, despite some groundlessness. However, we note that any information refuting the rumors will almost inevitably lead to the fall of the pound sterling. There must be a preparation for the possible emergence of such information.
Trading recommendations:
The GBP/USD pair continues its upward movement and has fulfilled the first target of 1.3184. Thus, the next actual target for buy orders is the level of 1.3253. A reversal of the MACD indicator downwards signals the beginning of a correction.
It is not recommended to consider sell orders yet, the current uptrend should be broken first, and it is too dangerous to trade corrections in the current conditions. Thus, shorts are not relevant until the formation of a new "dead cross".
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 Band 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