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4-hour timeframe
The amplitude of the last 5 days (high-low): 40p - 81p - 77p - 74p - 60p.
Average amplitude for the last 5 days: 66p (76p).
If the euro currency, in principle, stands in one place today, then the British pound sterling has once again started to fall against the US dollar. As in the case of the euro/dollar pair, the bulls have not only failed in overcoming the Ichimoku cloud, but even to work out its upper limit. Thus, a downward correction has now begun against the weakest upward trend, which itself is a correction against a downward trend. We still believe that there are no particular prospects for the pound sterling now. Not only has the British prime minister not been elected yet, Brexit is in one place, there is no longer any hope for an orderly exit from the EU, and the country is threatened with new Parliamentary elections, and British politicians also manage to get into scandals. And not just a scandal, but a scandal involving Donald Trump, who, for no particular reason, can just for a whim, for example, get out of a nuclear "deal" with Iran. As evidenced by the secret correspondence of the British diplomat in Washington, which became public. It is now difficult to predict as to what awaits the UK in trade and diplomatic relations with the United States. From a technical point of view, the pound/dollar pair has almost dropped to the critical line. Overcoming it will bring bears back into the game, and the downward trend will resume.
Trading recommendations:
The pound/dollar currency pair began a downward correction. Thus, traders are advised to wait until it is completed (rebound from the critical line) and it will be possible to buy the sterling with minimal lots with targets at 1.2596 and 1.2621.
You can sell the British currency after the pair has been re-consolidated below the Kijun-Sen line, which will lead to a change in the trend to a downward one. Targets are levels of 1.2482 and 1.2463.
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.
Chikou Span - green line.
Bollinger Bands indicator:
3 yellow lines.
MACD Indicator:
Red line and histogram with white bars in the indicator window.
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