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4-hour timeframe
The amplitude of the last 5 days (high-low): 60p - 86p - 63p - 72p - 66p.
Average amplitude for the last 5 days: 69p (68p).
Well, for a long time there were rumors and concerns that several large companies could leave the UK in the event of a "hard" Brexit. Ford decided not to wait or find out whether it was going to be a hard or orderly Brexit. The automotive giant is closing the production of engines that are used in vehicles produced in the United States, Turkey and Germany. Most likely, sometime later, production facilities will be moved to another country. The speech by Mario Draghi did not concern the pound sterling, so the volatility for the pound/dollar pair remained unchanged on June 6. Mark Carney's speech was boring and uninteresting, and had no effect on the bidding process. There is no news on Brexit, and will unlikely appear in the coming weeks. Tomorrow, Theresa May officially leaves her post as the leader of the Conservative Party, but will continue to be the country's prime minister until the moment when a new one is elected. From a technical point of view, the GBP/USD pair has completed the resistance level of 1.2729 for the second time and again failed to overcome it. Thus, in the coming days, the downward movement of the pair may resume. Participants in the foreign exchange market do not find compelling reasons for critical purchases of the pound sterling, despite a week of failed macroeconomic statistics from overseas. But the continuing uncertainty in the political sphere of the UK can create moderate pressure on the pound sterling in the medium term. Thus, we recommend to wait for a change in the downward trend and resume purchases of the US dollar.
Trading recommendations:
The pound-dollar currency pair continues a slight upward correction. Formally, it is now possible to consider longs to the level of 1,2776, but the position of the bulls is still very weak. The upward movement may be completed soon.
Sell orders can be considered if traders manage to return the GBP/USD pair below the critical line. In this case, the target for the downward movement will be the support level of 1.2540.
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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