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4-hour timeframe
The amplitude of the last 5 days (high-low): 81p - 77p - 74p - 60p - 67p.
Average amplitude for the last 5 days: 72p (66p).
The British pound began to fall against the US dollar in the morning, just like the euro. Thus, the conclusion is that the US dollar was more expensive and in demand today. If the euro showed a very modest fall, which has already stopped, the British currency continues to fall down and has already dropped by more than 100 points. Now the most interesting thing: the pound completely ignored the reports on wages in the UK for May, which showed a positive trend and exceeded forecast values. It turns out that UK data is not even particularly interesting for market participants. What is the use of it, if there is political chaos in the country, and the chances that it might be a "hard" Brexit or even postponed to a later date has increased for the second time? New Parliamentary elections or even a second referendum are possible. The most interesting is that all these options are quite probable and none should be given preference in determining the degree of probability of its execution. Large corporations continue to leave the country amid all the same uncertainty, in which Great Britain has been bathed in for the past 3 years. Mark Carney did not say anything interesting to the foreign exchange market during his speech today, but on the whole his position has long been known. He repeatedly warned the British government that the hard Brexit would be a crushing blow to the economy. But Boris Johnson and Jeremy Hunt believe that the hard Brexit is not so terrible and there is no other option. Well, let's see who wins the election and what will happen before October 31.
Trading recommendations:
The pound/dollar currency pair resumed a downward trend. Thus, traders are advised to trade again for a fall with targets at 1.2391 and 1.2343 before the MACD indicator turns up or the price rebounds from any target.
It will be possible to buy the British currency after the pair is re-consolidated above the Kijun-Sen line, which will lead to an upward trend. The targets are the Senkou Span B line and the 1.2621 level.
In addition to the technical picture should 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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