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4-hour timeframe
The amplitude of the last 5 days (high-low): 131p - 77p - 113p - 81p - 72p.
The average amplitude for the last 5 days: 95p (94p).
The second trading day of the week ends disappointment for the British currency again. No, the pound rate did not decline at the end of the day, although the day is not yet over. Another thing is important. That there is no strengthening of the pound sterling, while the US dollar is falling against many other currencies. This once again proves the weakness of the pound, the lack of people willing to invest in the British economy, and shows a huge number of problems in the UK, which traders can not ignore. Thus, the conclusion for the British currency is disappointing - as long as the British government does not solve its political crisis, issues with Brexit, and will not improve the macroeconomic indicators, the pound has only a small corrective growth. For traders this means that long positions will remain short-term and small lots. What is even more remarkable is that after reaching the local maximum area, sales of the pound began. Perhaps, traders are preparing for new long-term purchases of the US currency against the British pound. If so, then the outlook for the pound becomes even less rosy. But Donald Trump will find it difficult enough to depreciate the US currency against the British. However, the US leader will certainly come up with something.
Trading recommendations:
The GBP / USD currency pair on the US trading session began a correction, which the MACD indicator has not yet responded to. Nevertheless, the long lines remain risky enough. And if the price overcomes the critical line, then they will not become actual at all.
Short positions are recommended to be considered after consolidation of traders below the critical line. In this case, the chances of starting a new downward trend will increase, and shorts will become relevant with the targets of 1.2788 and 1.2738.
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.
Chinkou Span is a 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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