4-hour timeframe

The amplitude of the last 5 days (high-low): 119p - 138p - 82p - 159p - 73p.

Average amplitude for the last 5 days: 114p (115p).

On Tuesday, January 29, the GBP/USD pair is trying to resume an upward movement, although the MACD upward indicator has not yet managed to turn around. In the UK, where a re-vote on the Theresa May Act on Brexit is to take place today, interesting things continue to happen. Probably realizing that today's vote will also fail, Theresa May moved it to February 13th. Today, the Parliament will vote for a number of amendments to the version of Theresa May's document. Of course, most of the amendments will relate to the so-called "backstop". Thus, today's meeting of the Parliament is now only a formality for the currency market, since no important decision will be made today. Theresa May once again extended the "pleasure" to follow the epic with the country's exit from the EU and backed down on the proposal of the European Union for new negotiations on an agreement, as parliamentarians made it clear that they would not vote for her project if their wishes were not taken into account along the Northern Ireland border, which remains a stumbling block. As for the technical component, the pair maintains a clear uptrend and has not yet been able to adjust to the Kijun-Sen line. Thus, there is every reason to assume the resumption of the rising upward movement that has gained strength. As we have already said, there are no particularly good reasons for such a strong strengthening of the pound, but as long as the trend remains, the best solution will be to follow it.

Trading recommendations:

The GBP/USD currency pair started a weak correction. The reverse turn of the MACD indicator up will serve as a signal to open new long positions with the target of 1.3294. The uptrend keeps its prospects above the Kijun-sen line.

Shorts are recommended to be considered after overcoming the Kijun-sen line by traders. In this case, it will be possible to trade for a decrease in small lots with the first goal of the support level of 1.2945.

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.