4-hour timeframe

The amplitude of the last 5 days (high-low): 89p - 62p - 77p - 46p - 102p.

Average amplitude for the last 5 days: 75p (70p).

Boris Johnson did not have time to win the first round of elections for the post of leader of the Conservative Party, as well as the prime minister of Great Britain, as he immediately missed the televised debate on just these elections. During the live debates, candidates could share their plans for Brexit with voters and the whole country and simply answer the questions of the presenters. n addition to Johnson, the leader of the Brexit party, Nigel Farage, who, however, does not participate in the race for the prime minister's position, did not come to the debate either. Johnson, who by his behavior and even a little outwardly resembles Donald Trump, immediately fell under a barrage of criticism from other candidates. For example, Jeremy Hunt, foreign minister, said he did not understand how Johnson would deal with 27 countries if he lacked the courage to come to the debate, where only 5 of his colleagues are participating? Meanwhile, the pound sterling continues to fall into the abyss. Even the absence of important macroeconomic reports today did not become the basis for traders to slightly adjust the pound/dollar pair. The mood on the instrument is absolutely bearish, and traders simply do not see any reason to refuse to sell. Now the hope of the pound sterling is fully linked to the Fed meeting on Wednesday. If traders hear a "dovish" rhetoric from Powell again, it can at least stop the fall of the pound. For a while. Because of the UK itself, even ardent optimists no longer expect any positive information. The head of the Bank of England Mark Carney will deliver a speech tomorrow in the evening, but what positive can he tell traders? Most likely, his speech will not have any impact on the course of trading.

Trading recommendations:

The pound/dollar currency pair continues its downward movement without any signs of the beginning of a correction. The next targets for shorts are 1,2525 and 1,2483. To manually reduce a short position – at the turn of the MACD indicator upstairs.

Theoretically, it will be possible to buy the pound sterling if the pair has consolidated above the critical line. However, the position of the bulls, even in this case, will be extremely weak, and any longs are extremely dangerous in terms of risks.

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.