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4-hour timeframe
The amplitude of the last 5 days (high-low): 158p - 195p - 77p - 137p - 79p.
Average amplitude for the last 5 days: 129p (164p).
Following the Conservative Party of Great Britain, a vote of no confidence in Theresa May can be made by the Labour Party. That's what Jeremy Corbyn, her leader, said. This decision was made by Corbyn on the basis of the postponement of the vote in Parliament on the Brexit bill in mid-January. According to Corbyn, this is unacceptable, and the vote should be held before the Christmas and New Year holidays. Thus, just a few days after a similar event in the Conservative Party, it can happen again. Will Prime Minister May be able to keep her post this time? One thing is for sure, since September, distrust within the Parliament and among the country's population is only growing. If Theresa May is still dismissed, then further events can be absolutely anything. Starting from the abolition of Brexit, according to the decision of the European Court of Justice under article 50 of the Lisbon Treaty, ending with the disordered Brexit. The pound sterling in the last few days only thanks to Donald Trump, who came to the forefront right before the Federal Reserve meeting, has risen slightly. However, as before, almost everything will depend on the final decision of the Parliament on Brexit, if the vote, of course, will take place at all. Thus, we believe that the growth potential of the British currency is not just limited, but very limited. The pound may get some support if the Fed does not raise the key rate tomorrow, which will be quite unexpected. But this chance is extremely small. So far, the price has managed to overcome the Ichimoku cloud, but the upward movement is weak and uncertain.
Trading recommendations:
The GBP/USD currency pair continues its weak upward movement and hardly overcame the Ichimoku cloud. Thus, formally, it is now possible to consider long positions with the targets of 1,2734 and 1,2774, but with extreme caution.
It is recommended to resume sell positions not earlier than the reverse consolidation of the price below the Kijun-sen line with the first target of 1.2514. Tomorrow's announcement of the results of the Fed meeting may have a strong impact on the movement of the currency pair.
In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.
Explanation of illustration:
Ichimoku Indicator:
Tenkan-sen-red line.
Kijun-sen – 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:
Red line and histogram with white bars in the indicator window.
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