24-hour timeframe
The whole world has been waiting for a decision on Brexit for several months. At the end of last year, it seemed that the situation was nearing its end. March is over, and all that can be said about this is complete uncertainty. The only thing in which the British Parliament, Theresa May and the EU leaders agreed is that the Brexit should be postponed. However, there is no unity of opinion. The EU is ready to prolong the UK release dates until April 12, if the Parliament accepts the agreement, and by May 22, in the case of a "tough" scenario. None of these options are suitable for London. Thus, the parties "agreed" to move Brexit "later." And during this time, try to find new points of contact. What are these points, it is difficult to even guess. The pound sterling responds to these events very discreetly. This is amazing. By and large, no deterioration is expected yet, but the very fact that the parties cannot come to a consensus is very alarming. One gets the impression that traders are simply waiting for the first step from strong and large players, in order to later support their decision and follow the trend. If so, then the pound can wait for a strong and sharp collapse. There is only one way out of this situation – the acceptance of the agreement reached by Theresa May. But it does not suit the Parliament. However, in the absence of better options, the "deal" can still be approved by the House of Commons on the third attempt. However, first you need to organize a third vote. If it fails, it will be a complete absurdity, since London cannot even formulate what it wants, what kind of "divorce".
Trading recommendations:
The upward trend in the pair is not broken in the long term. However, the pair is being adjusted now, and trading in complete uncertainty is fraught with increased risks. Thus, we recommend extremely cautious trading in the coming weeks, preferably intraday.
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.
Chinkou Span - green line.
Bollinger Bands indicator:
3 yellow lines.
MACD Indicator:
A red line and a histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com