GBP/USD. November 22. Results of the day. A very important arrangement, which has no special significance for the pound

4-hour timeframe

The amplitude of the last 5 days (high-low): 307p - 118p - 90p - 106p - 56p.

Average amplitude for the last 5 days: 135p (162p).

The British pound sterling on Thursday, November 22, made a dash to the top, responding to the statement of Donald Tusk that the parties (the UK and the EU) came to a consensus on Brexit. Now we need the document to be approved by other EU member states. For the pound, this news is nothing more than a positive moment. As we have repeatedly written, now the greatest stumbling block for the UK is not in the EU, but in itself. If Parliament rejects the agreement with the EU, proposed by Theresa May, it will neutralize all progress in negotiations with the EU. In our opinion, "with a scratch", but most likely, the Parliament nevertheless adopt a plan for Theresa May's Brexit. And the pound will sigh for a while. But this is not expected in the coming weeks. The vote on this issue will be held in December. Thus, the pound remains in limbo. That is why we believe that the strengthening of the British currency will not be long-term, or even medium-term. In the near future, traders can start selling the pound again, although there are no new negative fundamental factors. Therefore, the best development of the situation for the UK and its national currency would be simply the absence of a new negative before the vote in Parliament. From a technical point of view, the price overcame the Kijun-sen line, but could not gain a foothold inside the Ichimoku cloud. Therefore, there is a fairly high probability that the downward movement will resume, but it is unlikely to do so tomorrow, since no important report is scheduled for Friday again, neither in the UK nor in the United States.

Trading recommendations:

The GBP/USD currency pair has made a breakthrough, which is unlikely to be continued. Thus, long positions are formally now relevant for the purpose of the Senkou Span B line, however in small lots, since the strengthening of the pound can be extremely long-term.

Short positions can be considered again if the pair returns to the area below the critical line with a target of 1.27. However, during tomorrow, most likely, we expect a fairly low market activity.

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.