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4-hour timeframe
The amplitude of the last 5 days (high-low): 50p - 91p - 63p - 92p - 94p.
Average amplitude for the last 5 days: 78p (79p).
The EUR/USD currency pair on Wednesday, December 12, sharply began an upward movement. The key and perhaps the only important news of the day was the launch of the procedure of the vote of confidence in British Prime Minister Theresa May. This required 48 signatures of conservative politicians, which were collected and handed over to the head of the parliamentary committee. Theresa May herself hastened to comment on this event, saying that, in her opinion, the change of leadership will slow down the whole process of Brexit. Changing the leader of the Conservative Party, according to May, will put the country's future in jeopardy, creating uncertainty. Theresa May omitted the fact that uncertainty accompanies the whole process of Brexit for at least several months. The fact that she herself had cancelled the vote in Parliament did not embarrass her. The fact that her plan "Chequers" is supported by very few, respectively, is not quite "what citizens voted for in the referendum", too. In general, all this is similar to clinging to a straw of a drowning man. Of course, Theresa May could not comment on this event, but, as we have repeatedly written, the probability that she will be dismissed is high. And the UK with the resignation of Theresa May will have several options and opportunities to beat Brexit and maybe even abandon it.In the current environment, this doesn't seem like such a bad idea. Anyway, both the euro currency and the pound sterling went up with pleasure on this message. Of course, it is too early to talk about a change in the trend, but, as we see, traders positively received information about the possible departure of Theresa May.
Trading recommendations:
The EUR/USD currency pair started a round of upward correction against the "dead cross". Thus, it is recommended to open new short positions not earlier than fixing the price below the Ichimoku cloud with the targets of support levels of 1.1328 and 1.1284.
Orders for the purchase of small lots with a target of 1.1440 will become relevant only after fixing the price above the critical line Kijun-sen. In this case, the trend for the instrument will again change to an upward one. In recent days, there are often local reversals.
In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.
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.
Chikou span – green line.
Bollinger Bands Indicator:
3 yellow lines.
MACD:
Red line and histogram with white bars in the indicator window.
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