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4-hour timeframe
The amplitude of the last 5 days (high-low): 64p - 86p - 42p - 129p - 95p.
Average amplitude for the last 5 days: 83p (84p).
If the European currency received a new portion of the negative in the form of weak macroeconomic reports from the European Union, the British pound was deprived of a point of negativity on Thursday, May 23. But the pound sterling has a huge negative fundamental background, which serves as the basis for traders to continue to getting rid of the British currency for almost three weeks without a single correction. Meanwhile, there is a new resignation in the British Parliament. This time, the leader of the House of Commons, Andrea Leeds, said that she no longer believes in the government's approach to Brexit and is leaving her post. Thus, the total number of politicians who left their posts due to Brexit has exceeded 20. Tomorrow, according to many experts, Theresa May herself can complete this list of resignations, who has completely lost the support of the government. In addition, the party organizer of the Conservative party, Mark Spencer said that for the week of June 3-7, the agenda in the House of Commons does not include voting for the "deal" on Brexit. Although previously Theresa May personally stated that the fourth vote will be held on June 3. It seems that the prime minister's plans were completely spoiled. It is not surprising that the pound sterling continues to fall down, losing 50-70 points every day. Needless to say once again, the bears continue to completely outplay the bulls. More precisely, the bulls do not even enter into this game, since there is no reason to buy the British pound right now. The market is completely unambiguous in its trading strategy. From our point of view, Theresa May's resignation is the only thing that could change the pound sterling's deplorable situation.
Trading recommendations:
The pound/dollar currency pair continues its downward movement. Therefore, now it is recommended to consider selling the pound sterling with targets support levels of 1,2604 and 1,2558 before the upward reversal of the MACD indicator.
Buy orders could be considered in small lots only when the price has consolidated above the Kijun-sen line with the first target Senkou span B line. The mood of the GBP/USD currency pair remains frankly bearish.
In addition to the technical picture also take into account the fundamental data and the time of their release.
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.
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