GBP/USD. April 11th. Results of the day. The British pound does not know how to respond to Brexit's postponement
The amplitude of the last 5 days (high-low): 131p - 135p - 49p - 91p - 77p.
Average amplitude for the last 5 days: 97p (96p).
On Thursday, April 11, the British pound sterling is also trading in a narrow side channel. Volatility in the last three days has decreased significantly, although for the UK there was a period for the fate of the next decision. Brexit was eventually postponed to October 31, 2019, so London will have 6 months to find the best way out of the EU, which Parliament will approve. True, this does not mean that the EU will take any option, so, in fact, we are waiting for new negotiations between London and Brussels in this direction. By and large, the epic called "Brexit" is simply delayed for another 6 months, and the probability of its positive completion has not increased by a percent. There is nothing special to note from the other news of the day. Therefore, the GBP/USD's current situation is very similar to that of the EUR/USD pair. Traders just have to wait for further developments, new macroeconomic reports and the moment when market participants for the most part stop being cautious, form a new strategy for the coming weeks or months, and volatility, along with the trend, will be restored. Even from a technical point of view, any position is currently associated with increased risks. Trading the pair in a narrow price range is extremely inconvenient. But even with such a desire, the signal to buy the "Golden Cross" is weak, the pair is currently being adjusted, and the shorts are not relevant as long as the price is above the critical line.
The GBP/USD currency pair has consolidated above the critical line, but cannot yet develop an upward movement. Formally, longs are relevant now, however, the pair failed to overcome the Senkou Span B line, and volatility is low.
It is recommended to open sell orders if the bears manage to return the pair below the critical line, with a target of 1.2986.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanation of the illustration:
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.
Red line and histogram with white bars in the indicator window.The material has been provided by InstaForex Company - www.instaforex.com