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4-hour timeframe
Amplitude of the last 5 days (high-low): 50p - 106p - 92p - 114p - 61p.
The average amplitude over the last 5 days is 85n (91p).
One more negative day for GBP in its collection. Today, there was a hope that the macroeconomic reports from the UK would not be a failure, and that they would support the British currency at least a little bit. However, these hopes were not destined to come true. By and large, only the unemployment rate, which decreased from 4.2% to 4.0%, was satisfied but the number of applications for unemployment benefits in July was higher than predicted by experts. The growth rate of average wages fell from 2.5% to 2.4%. Thus, even if some traders considered this information neutral, the pound sterling still did not help. Given the volatility of the instrument during the day, it seems that traders have completely ignored these reports. Thus, we have an ongoing extremely weak correction to the critical line, which more suits the concept of "lateral". Proceeding from this, if in the near future there will be no any information capable of pressing on the US dollar. On the other hand, an optimistic news from the UK one does not even have to hope.
There are no relations between the Brexit between the EU and the United Kingdom while Theresa May is silent, no information is coming from the UK Parliament either. Thus, the English currency still has no good reasons for strengthening, especially in relation to the US dollar. Then the pound sterling.
Trading recommendations:
The GBP / USD currency pair moves more sideways than up. Nevertheless, the correction still remains and it is recommended to wait for its completion, after which to resume trading on the downside with the target of support level 1.2690, calculated taking into account the average volatility of the pair.
It is recommended to consider purchase orders only if traders overcome the Kijun-sen line and strengthen the movement as a whole. Only, in this case, the British currency will have at least some chances of growth, and traders - the opportunity to open longs.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations to the illustration:
Ichimoku Indicator:
Tenkan-sen is a red line.
Kijun-sen is a blue line.
Senkou Span A is a light brown dotted line.
Senkou Span B - a light purple dotted line.
Chikou Span is a green line.
Bollinger Bands Indicator:
3 yellow lines.
MACD indicator:
Red line and histogram with white bars in the indicator window.InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
