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21.06.201900:33 Forex Analysis & Reviews: GBP/USD. June 20th. Results of the day. The Bank of England left rates unchanged and lowered its GDP forecasts

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4-hour timeframe

Exchange Rates 21.06.2019 analysis

The amplitude of the last 5 days (high-low): 46p - 102p - 76p - 59p - 131p.

Average amplitude for the last 5 days: 83p (72p).

The British pound sterling, as well as the euro, increased for most of the day against the greenback, and this growth stopped at the US trading session, as the Americans managed to work out all the information from the FOMC yesterday. Today, the British currency did not particularly react to the information received during the day, and there was a lot of information, but not of such a character, that traders would actively rush into battle. First of all, the Bank of England quite expectedly kept the current rate at 0.75%. Secondly, the regulator lowered its GDP forecast for the second quarter of 2019 to 0.0% q/q. Thirdly, the decision not to change the monetary policy was made unanimously by all 9 members of the committee. Fourthly, Boris Johnson won the fourth round of elections for the post of leader of the Conservative Party, and tonight the fifth round will be held, which will leave only two candidates in the game, one of whom is Johnson. In the evening there will be a speech by the head of the Bank of England, Mark Carney, who can inform the markets of important information about the regulator's plans for monetary policy. All this is very interesting, but does not affect the UK economy, its prospects, as well as the main topic of the last three years - Brexit. Unfortunately, the last round of elections will last for about a month, about 160,000 members of the Conservative Party will take part in the voting. Accordingly, although Johnson's chances of winning are much higher than any of the candidates, but the name of the new prime minister will be announced only in a month. This means that the pound sterling and Brexit will remain in limbo for another month.

Trading recommendations:

AUD/USD: resistance level of 1,2704 and are unable to overcome it. Thus, a downward correction is now expected to target the critical line. New purchases of the pound may be considered after overcoming the level of 1,2704 or on the signal of completion of the correction.

It will be possible to buy the US dollar if the pair has consolidated below the Kijun-sen line. In this case, the downward trend may resume with the first target support level of 1.2525.

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.

Paolo Greco
Analytical expert of InstaForex
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