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4-hour timeframe
Amplitude of the last 5 days (high-low): 68p - 55p - 69p - 131p - 77p.
The average amplitude for the last 5 days is 80p (79p).
In the penultimate trading day of the week during the European trading session, the British pound sterling continued to adjust, but closer to the US session, the US dollar began to lose ground. So far, all today's movement is fully within the scope of a downward correction with a view to a critical line that can be worked out today. In the coming hours in the States, preliminary values of indices of business activity in the services and manufacturing sectors for August. However, these reports will most likely be ignored by the market as insignificant. Today, at least some information is expected about the progress of negotiations between the States and China regarding new trade conditions between the countries. This information is the most important and 100% will cause a tangible market reaction. Unfortunately, it is rather difficult to predict how the negotiations will end, but so far everything is going to the fact that the parties will not come to the common denominator.
As for the UK, the Minister for Brexit, Dominic Raab, warned that London is prepared for agreement with Brussels, and if the EU shows the proper spirit and determination the EU without a deal. By and large, the probability of concluding a deal, at the same rate as the popularity of Theresa May, both in Parliament and among the people. "Both sides have the same thing as the outcome of the confrontation" without a deal. " The timing of the talks is approaching its end. October is the deadline. and if the EU shows the proper spirit and commitment, the deal will be achieved, but there must also be a reserve exit plan from the EU without a deal.
Trading recommendations:
The GBP / USD currency pair began to be adjusted with the aim of a critical line. It is recommended to exercise correction carefully. It is best to open shorts after the bears have overcome the critical Kijun-sen line with the goal of a pivot level of 1.2745.
Buy positions will again become relevant after the completion of the current correction with the targets of 1.2911, 1.2939 and 1.2996. The signal to open longs is the turn of the MACD indicator upward or the price rebound from the critical line.
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.
