GBP/USD. January 10th. Results of the day. The British pound has been quiet in recent days
January 11, 2019 1:24 am
4-hour timeframe
The amplitude of the last 5 days (high-low): 192p – 211p – 72p – 93p – 94p.
Average amplitude for the last 5 days: 132p (140p).
The British pound on Thursday, January 10, also began to adjust, although this correction was not preceded by any strong growth of the pair. Nevertheless, once again I would like to note that the pound has approached its local highs, which will be very difficult to overcome without significant fundamental grounds. At the moment they are not, although tonight during Federal Reserve head Jerome Powell’s speech, they may appear. However, the markets are looking forward to the final decision of the British Parliament on Brexit. Needless to say once again that this epic has been going on for two years, and now the X time is coming for the country. If Theresa May doesn’t postpone voting on her bill for the second time, then in a week it will be known exactly what conditions the UK will leave. For the pound, it is not so important now whether it is an ordered Brexit or Brexit without a “deal”, the currency needs clarity. Traders need clarity to build a long-term strategy. While this clarity is not present, the pound will not be able to significantly strengthen its position against the US dollar. From a technical point of view, we should wait until the current correction is completed to be able to consider long positions. However, there is a strong resistance in the area of 1.2800, so now the growth potential of the British currency is limited. Leaving below the critical line will contribute to the beginning of the downward movement with the target level of 1.2613, which is calculated on the basis of the average volatility of the instrument in recent days.
Trading recommendations:
The GBP/USD currency pair has started a new round of correction, so new long positions can be opened after the reverse reversal of the MACD indicator up to the resistance level of 1.2877. The intermediate target is 1,2800.
Shorts are recommended to be considered after fixing the price below the Kijun-sen line. In this case, a downward movement is expected in order to support the level of 1.2613.
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.
The material has been provided by InstaForex Company – www.instaforex.com
4-hour timeframe
The amplitude of the last 5 days (high-low): 192p – 211p – 72p – 93p – 94p.
Average amplitude for the last 5 days: 132p (140p).
The British pound on Thursday, January 10, also began to adjust, although this correction was not preceded by any strong growth of the pair. Nevertheless, once again I would like to note that the pound has approached its local highs, which will be very difficult to overcome without significant fundamental grounds. At the moment they are not, although tonight during Federal Reserve head Jerome Powell’s speech, they may appear. However, the markets are looking forward to the final decision of the British Parliament on Brexit. Needless to say once again that this epic has been going on for two years, and now the X time is coming for the country. If Theresa May doesn’t postpone voting on her bill for the second time, then in a week it will be known exactly what conditions the UK will leave. For the pound, it is not so important now whether it is an ordered Brexit or Brexit without a “deal”, the currency needs clarity. Traders need clarity to build a long-term strategy. While this clarity is not present, the pound will not be able to significantly strengthen its position against the US dollar. From a technical point of view, we should wait until the current correction is completed to be able to consider long positions. However, there is a strong resistance in the area of 1.2800, so now the growth potential of the British currency is limited. Leaving below the critical line will contribute to the beginning of the downward movement with the target level of 1.2613, which is calculated on the basis of the average volatility of the instrument in recent days.
Trading recommendations:
The GBP/USD currency pair has started a new round of correction, so new long positions can be opened after the reverse reversal of the MACD indicator up to the resistance level of 1.2877. The intermediate target is 1,2800.
Shorts are recommended to be considered after fixing the price below the Kijun-sen line. In this case, a downward movement is expected in order to support the level of 1.2613.
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.
The material has been provided by InstaForex Company – www.instaforex.com
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