4-hour timeframe
Amplitude of the last 5 days (high-low): 116p - 91p - 80p - 86p - 74p.
Average amplitude over the last 5 days: 89p (96p).
Boris Johnson, due to the eccentricity of his actions, and often the illogicality, is catching up with Donald Trump by leaps and bounds. Opponents of his policy on the Brexit issue were huge before the election. Firstly, there is the Labour Party. Secondly, it is the Conservatives themselves, among whom there are enough deputies who do not support the "hard" Brexit. And now, after just a few weeks of Johnson's reign, talk of a vote of no confidence has already begun. The reason is simple - absolutely everything, and deputies, and the Bank of England, and ordinary citizens, understand that Brexit will lead the United Kingdom without an agreement with the EU in a long period of crisis. GDP will fall, there will be an outflow of capital, a reduction in investment, an increase in inflation, a depreciation of the pound sterling, and an increase in unemployment. It will take years to recover. However, some members of Parliament are simply ready to take such a step if only to leave the European Union and realize the "will of the people". Boris Johnson is at the head of this movement. However, realizing that opponents could unite in the so-called "unity government", declare a vote of no confidence and vote for Johnson's resignation, the premier already decided to play it safe and announced through his adviser Dominic Cummings that he would not resign. According to British law, even if Parliamentarians vote for Johnson's resignation, he will either have to leave his post or he should be removed from his post by the queen of Great Britain, who appointed him to this post. Thus, the option is not ruled out in which Queen Elizabeth II will have to intervene in the situation. After describing a new potential problem for Great Britain, is it worth mentioning as to why the British currency is not growing? Volatility has declined in recent days, while the pound/dollar is moving mostly sideways. Both bulls and bears are waiting for new data, reports, "numbers". However, in general, it can be said that the Forex market is not yet ready for purchases of the pound sterling.
Trading recommendations:
The GBP/USD currency pair continues the weakest upward movement, which is interpreted as a side correction. We recommend that you wait until the correction is completed, the Bollinger bands widen to one side, and only after that
In addition to the technical picture, fundamental data and the time of their release should also be considered.
Explanation of the illustration:
Ichimoku indicator:
Tenkan-sen is the red line.
Kijun-sen is the blue line.
Senkou Span A - light brown dotted line.
Senkou Span B - light purple dashed line.
Chikou Span - green line.
Bollinger Bands Indicator:
3 yellow lines.
MACD indicator:
Red line and bar graph with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com