The amplitude of the last 5 days (high-low): 66p - 73p - 74p - 89p - 62p.
Average amplitude for the last 5 days: 73p (75p).
The British pound sterling shows the lowest volatility in trading on Wednesday, June 12th. The only important macroeconomic report today — inflation in the United States — turned out to be weak, but it did not cause either euro or pound sterling purchases. But there was extremely important information, which in the aggregate with the general fundamental background from the UK could once again start to put pressure on the British currency. The fact is that there was a leak of information from government circles, and this information states that the UK will need at least 5 months to resolve all issues with the pharmaceutical industry and border control in case Brexit follows the "hard" scenario. According to insider information, government agencies involved in preparing for an unorganized Brexit achieved only "minimally viable results." This information greatly reduces the likelihood of Britain leaving the EU in an uncontrolled way, since the country is unlikely to manage to prepare for this option by October 31. In conjunction with the Labour Party's ban on a "hard" Brexit reduces this probability to almost zero. Thus, the options for selecting the next UK prime minister remains few. Also, they all raise many questions. The British pound continues to fear uncertainty and hardly shows growth during a period when this growth would be the most reasonable and logical.
The pound-dollar currency pair returned to the area above the Kijun-sen line, so now buy orders with a target of 1.2794 are relevant again. However, we recommend that you be careful in buying the pair – the bulls' positions remain extremely weak.
It will be possible to sell the pound sterling if traders manage to return the GBP/USD pair below the critical line with the target of 1.2659. In this case, the bears will have a chance to form a new downward trend.
In addition to the technical picture 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 market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.