4-hour timeframe
The amplitude of the last 5 days (high-low): 99p - 114p - 94p - 75p - 126p.
Average amplitude for the last 5 days: 102p (90p).
The British pound sterling in the European trading session has grown quite significantly, but already in the US - it began to fall in price again. The growth in demand for the British pound was clearly caused by insider information that the country that initiated the withdrawal from the EU can also unilaterally cancel its decision. And it will need the consent of other EU member states. This gives hope to all opponents of Brexit that the exit from the EU may not take place. On the one hand, this is certainly positive news for the pound sterling. On the other hand, British Prime Minister Theresa May has repeatedly stated that Brexit will be in any case - either according to her plan or without any deal with the EU. However, if Theresa May will be released from her duties as prime minister, there is an option in which the UK may still remain in the EU. Of course, now this option looks unreal. It is too complicated in execution. However, December will definitely be decisive for the pound in all senses of the word. And from our point of view, anything can happen. Starting with the announcement of the vote of no confidence in Theresa May and her removal from the post of prime minister and ending with the refusal of Parliament to take the initiative of Mrs. May and the complete abolition of Brexit. From a technical point of view, the pound worked out the resistance level of 1.2832 and the upper limit of the Ichimoku cloud, but failed to overcome them. Therefore, now there are no visible obstacles to the resumption of the downtrend on the instrument.
Trading recommendations:
The GBP/USD currency pair may complete the correction and resume the downward movement with the target of 1.2693. A turn of the MACD indicator downwards or a consolidation of the pair below the critical line will serve as a signal for opening new sell orders
Long positions are recommended to consider not earlier than traders overcome the level of 1.2832. In this case, the British currency will have a real chance of forming at least a short-term uptrend.
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.