18.01.201902:07 Forex Analysis & Reviews: GBP/USD. January 17. Results of the day. The pound is slowly creeping up; Brexit has become even more uncertain

4-hour timeframe

The amplitude of the last 5 days (high-low): 73p - 156p - 112p - 246p - 72p.

Average amplitude for the last 5 days: 132p (136p).

The British pound sterling on Thursday, January 17, most of the day, as well as the European currency, stood in one place, just below the resistance level of 1.2898, and only at the American trading session did it start to move up and broke through the designated level. We wrote that the euro currency reacted very unusually to events in the UK in the last two days. But the pound sterling reacts even more unusually - just like the euro - in any way. Yesterday's parliamentary vote on the vote of no confidence in Theresa May for the second time ended with the victory of the current prime minister. But her Brexit plan failed and still does not find the necessary support from deputies. Thus, a paradoxical situation arises: the two-year talks with the EU at the moment look absolutely meaningless, what plan "B" Theresa May has, it is unclear what further actions and plans Theresa May has – it is unclear what in the end awaits the UK – is unknown. At the same time, the majority of the Parliament voted for Ms. May to maintain her position. All this leads only to the fact that we will witness the continuation of the epic with Brexit, which is already delayed and it is not known how long it will be. Once again we focus on the fact that the pound sterling with all this continues to grow moderately and, from a technical point of view, has good chances to continue the upward movement.

Trading recommendations:

The GBP/USD currency pair keeps the upward trend, but the volatility is reduced, and it is difficult to say what to expect from the pair in the near future. Technically now current long positions with a target of 1,2961, and a reversal of the MACD indicator down to indicate a round of downward correction.

It is recommended to consider sell orders with small lots not before fixing the price below the critical line. The goal in this case will be to act as a line of Senkou span, in any case, in the coming days, it is recommended to trade with caution.

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.