4 hour timeframe
The amplitude of the last 5 days (high-low): 77p - 60p - 82p - 52p - 58p.
Average amplitude for the last 5 days: 66p (72p).
On Wednesday, April 17, the British pound continues its downward movement in comparison with the previous day. Prospects for the further fall of the British pound are very extensive. Despite the fact that the pound is not too much cheaper in recent weeks, yet, the entire fundamental component is not in his favor. First of all, Brexit is still unclear on how it will end. This topic has already managed to annoy traders, as the tension was great but no result. Secondly, there were reports on inflation and retail prices in the UK yesterday and it turned out that both indicators in all expressions came out worse than experts' forecasts. Thirdly, from a technical point of view, the pair did not manage to overcome the strong resistance line of Senkou Span B, which is a strong signal for the pair to decline. In this way, too many factors in favor of the growth of the dollar and too little in favor of the growth of the pound. If in the near future there are no factors that support the pound sterling, then the UK currency will continue, albeit not very strong but a decline. In this way, too many factors are in favor of the growth of the dollar and too little in favor of the growth of the pound. If in the near future there are no factors that support the pound sterling, then the UK currency will continue, albeit not very strong, but a decline. Such a forecast can be given for the coming days and weeks. Separately, we can note that the weakened volatility of the GBP/USD pair, which also perfectly expresses the attitude of traders to the intermediate results of Brexit. The desire of market participants to trade the pair has simply decreased twice or thrice. Everything is not as bad as in the case of the EUR/USD pair but it is nearing to that.
Trading recommendations:
The GBP/USD currency pair has not been able to overcome the Senkou Span B line and therefore continues the downward movement. Thus, it is now recommended to consider short positions with targets at levels of 1.3017 and 1.2979 before the MACD indicator turns to the top.
Purchase orders are recommended to consider not earlier than overcoming the lines of Senkou Span B and Kijun-sen with targets of 1.3111 and 1.3125. However, we need serious fundamental reports in order to support the bulls.
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.
The material has been provided by InstaForex Company - www.instaforex.com