You are here: Home > articles > Forex > GBP/USD. Results of the week. The Brexit theme can put pressure on the pound for a long time
GBP/USD. Results of the week. The Brexit theme can put pressure on the pound for a long time
October 22, 2018 8:24 amVideo
Latest News
- EUR/USD: trading plan for the US session on May 3rd (analysis of morning deals). US data will be the key moment of the week May 3, 2024
- USD/JPY: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- GBP/USD: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- Video market update for May 03, 2024 May 3, 2024
- EUR/USD: Simple trading tips for novice traders on May 3rd (US session) May 3, 2024
- Could the BoE adopt a more dovish stance on Thursday? – Preview May 3, 2024
- EUR/USD. May 3rd. Bulls don’t give up without a fight May 3, 2024
- GBP/USD. May 3rd. Bears are counting on a strong US labor market May 3, 2024
- Market Comment – Stocks enjoy Fed-induced bounce as dollar slips ahead of NFP May 3, 2024
- Weekly Forex Outlook: 03/05/2024 – BoE and RBA decisions headline a calm week May 3, 2024
- Week Ahead – BoE and RBA decisions headline a calm week May 3, 2024
- USD/JPY: trading tips for beginners for European session on May 3 May 3, 2024
- GBP/USD: trading tips for beginners for European session on May 3 May 3, 2024
- EUR/USD: trading tips for beginners for European session on May 3 May 3, 2024
- Technical Analysis – WTI futures break below 200 day-SMA May 3, 2024
- Hot forecast for EUR/USD on May 3, 2024 May 3, 2024
- Key events on May 3: fundamental analysis for beginners May 3, 2024
- Trading plan for GBP/USD on May 3. Simple tips for beginners May 3, 2024
- Trading plan for EUR/USD on May 3. Simple tips for beginners May 3, 2024
- Forecast for EUR/USD on May 3, 2024 May 3, 2024
4-hour timeframe
The amplitude of the last 5 days (high-low): 98 p-95 p-93 p-116 p-93 p.
The average amplitude for the last 5 days: 99 p (103 p).
The British pound sterling was in a downward rally for the past trading week. In the first half of the week, traders did not expect any new agreements between Theresa May and European leaders to be reached at the EU summit. And in the second half, these expectations were confirmed. Thus, the British pound sterling rose in price only on Friday almost at the close of trading due to profit taking on short positions. The GBP/USD pair managed to adjust to the Senkou span B line, but failed to overcome it. The first three days of the new trading week will be completely empty in terms of macroeconomic data. However, there may be new information on the subject of Brexit. Recall that any decision must still be made. Either the parties recognize a complete failure in the negotiations and the UK will leave the EU without a “deal”, or the parties will nevertheless reach a consensus. The second option is not yet calculated. However, any information about this, for example from the British Parliament, can cause a strong reaction from market participants. From a technical point of view, the pair may rebound from the Senkou Span B line or Kijun-sen line and resume the downward movement. The prerequisites for the resumption of the upward movement will appear only if the pair manages to overcome the critical Kijun-Sen line. From a fundamental point of view, there are also no special reasons to expect a serious strengthening of the British currency.
Trading recommendations:
The GBP/USD currency pair has started to adjust. The price rebound from the Senkou span B or Kijun-sen line, as well as the MACD indicator reversal downwards, will serve as a signal to open new sell orders with the target of 1.2967.
Buy-positions can be considered again not earlier than the price fixing above the Kijun-sen line with the target of 1.3165. In this case, the trend will change to upward, but there are no fundamental prerequisites for this yet.
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
Related Posts: