4-hour timeframe

The amplitude of the last 5 days (high-low): 117p - 113p - 50p - 177p - 97p.

Average amplitude for the last 5 days: 111p (107p).

On Thursday, February 21, the British pound sterling also showed an upward movement. However, in general, we can not say that this strengthening of the pound sterling was provoked by some fundamental event. First, the upward movement was not so strong, and secondly, no important macroeconomic reports were published in the UK for today. The pullback can only be a reaction to yesterday's publication of the Fed's minutes, which, firstly, indicated a possible curtailment of the Fed's balance reduction program, and secondly, that a new increase in the key rate will be possible only if inflation accelerates. In general, the minutes can be called "dovish", however, the essence of this document is not in itself of crucial importance. The specific decisions of the regulator, the specific actions are important. In general, in the near future, the pair might once again rush downwards. Meanwhile, several ministers of the British Parliament threatened Theresa May with a "riot" if she did not postpone withdrawal from the EU at a later date and thereby lose the opportunity to blackmail Parliament with a "hard" Brexit. The Spanish Foreign Ministry also said that a new agreement is already being developed in Brussels, but it is not known how much this information is true. So far, EU officials have only stated that they are not against the postponement of the UK's exit from the EU. Thus, there is no unambiguously positive information for the pound sterling, which means that the pair will still be prone to downward movement.

Trading recommendations:

The GBP/USD currency pair has overcome the level of 1.3058, but in the coming hours it can start a new round of correction, which will be signaled by the MACD indicator turning down.

Sell positions can be seen again with a view to 1.2872, if bears can seize the initiative on the instrument and gain a foothold below the Kijun-sen critical 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.