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4-hour timeframe
The amplitude of the last 5 days (high-low): 228p - 284p - 319p - 123p - 97p.
Average amplitude for the last 5 days: 210p (214p).
British pound sterling on the first trading day of the new week began a new round of downward correction. It can hardly be said that it was caused by fundamental data or by any statement from Theresa May, which abounded in recent days. This is more like a consolidation process near monthly highs. The pound, after reaching the lows in January 2019, managed to rise in price against the US dollar by 9 cents, which raises a number of questions about consistency, since Brexit managed to fail several times during this time, and Theresa May herself was on the verge of retirement at least twice. However, the pound still went up, maintaining excellent chances to go to conquer new lows, if the patience and optimism of traders still run out. The most interesting thing is that there is no plan "B" for the case of the failure of her plan with the adoption of an agreement with the EU by the British Parliament by Theresa May. The second vote on her Brexit plan has failed - and so what? The prime minister immediately appoints the third vote, albeit with the proviso that it will not be held unless there is confidence in the high probability of the bill being passed. Theresa May herself once again came up with threats of "tough" Brexit, the rejection of it for an indefinite period and doubts that this moment (exit from the EU) would ever happen at all, thus hinting at the fact that it was no alternative. However, even in spite of her attempts to lure the opposition forces to her side and negotiate with some parliamentarians, including her own party, the chances of winning are still low.
Trading recommendations:
The currency pair GBP / USD started a new round of correction. Thus, in order to open new long positions with a target of 1.3459, it is recommended to wait until the current correction is completed, as indicated by the MACD indicator.
Sell orders can be viewed in small lots if the pair overcome the Kijun-Sen line, which will be the first step towards the formation of a new downtrend.
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 Bands indicator:
3 yellow lines.
MACD Indicator:
Redline and histogram with white bars in the indicator window.
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