4-hour timeframe

The amplitude of the last 5 days (high-low): 72p - 169p - 136p - 80p - 119p.

Average amplitude for the last 5 days: 115p (140p).

On the third trading day of the week, January 23, the British pound sterling resumed its upward movement and overcame the first resistance level of 1.3024. It is rather strange to observe the strengthening of the British currency in the current situation, nevertheless, we have already said that from a technical point of view everything is fine. The pair maintains an uptrend, and the MACD indicator ideally shows the start and end of all corrections. There are no new posts for Brexit. And, frankly, it's hard to imagine what the character must be that traders pay attention to them. Now, most likely, market participants are waiting for concrete decisions on Brexit, rather than a new portion of rumors that there may be a second referendum or that Theresa May might resign. Therefore, in order to break the current trend, we need strong, serious and official information. However, the current lack of market response does not mean that the Brexit question no longer interests the market. The Bank of England recently warned that in the event of a disordered Brexit, the pound sterling could drop another 25%. But what will happen to the pound if the UK remains in the EU? Nobody knows this yet. Therefore, we recommend following the trend now, not attaching importance to the fact that such growth is not entirely logical from a fundamental point of view.

Trading recommendations:

The GBP/USD currency pair resumed its upward movement. Thus, purchase orders with a target level of 1.3172 are now recommended. A turn of the MACD indicator downwards will serve as a signal to the manual reduction of longs.

Shorts are recommended to be considered after overcoming the critical line by traders. Only in this case it will be possible to trade small lots with the first purpose of lowering the Senkou line.

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.