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4-hour timeframe
The amplitude of the last 5 days (high-low): 104p - 108p - 99p - 120p - 119p.
Average amplitude for the last 5 days: 110p (104p).
After a fairly strong growth at the end of the last trading week, the GBP / USD pair began a sharp fall on Monday. It is an official holiday in the United States. They call it Columbus day. it still does not affect the volatility of the currency pair for the worse. On the contrary, we are witnessing quite an active trading in favor of the US dollar, despite the fact for obvious reasons that there are no important publications planned in America today. There is no news in the EU either. It is unlikely that a rather strong drop in the pair can be attributed to the fact that traders once again realized that there is no official information on the progress of negotiations on Brexit. Thus, the growth of the pound on Friday, associated with rumors about reaching certain agreements on the Irish border, was unsuccessful. However, the Euro currency also fell, so this is at least not the only reason for the strengthening of the American currency. Thus, the most likely reason for the growth of the US dollar is the technical as well as the overall market propensity to buy the US dollar after the Fed has raised the key rate once again, and also announced several more monetary policy tightenings.
On the technical side, the pair has completed the critical Kijun-sen line and it can resume the upward movement if it bounces off it. Overcoming this line could trigger the formation of a new downtrend with the first goals of 1.2983 and 1.2939. Also, several more monetary tightenings were announced.
Trading recommendations:
The GBP / USD currency pair has adjusted to the Kijun-sen line. The price rebound from this line will signal the opening of new long positions in small lots with a target of 1.3150. An upward reversal of MACD will confirm the end of the correction.
It is recommended to open shorts in case of overcoming the critical line with targets of 1.2983 and 1.2939. In this case, the "golden cross" will be weakened to the limit, and the upward trend in the instrument will be canceled.
It should be noted.
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.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.
