4-hour timeframe
Amplitude of the last 5 days (high-low): 123p - 102p - 98p - 87p - 97p.
The average is for 101n (113p).
On the first trading day of the week, the British pound sterling is traded in a narrow price range. Quite a strange market reaction to Trump's introduction of new trade duties against Chinese goods for a huge sum of $ 200 billion and a threat to impose sanctions for another $ 267 billion. Previously, more small trade restrictions caused a strong growth of the US currency. Thus, it seems that the market has already resigned to the desire of Trump to impose duties on all of its trading partners. By the way, Japan is on the line and negotiations with which are scheduled for September 24. If the parties do not come to a consensus, then we do not even need to assume the further actions of Trump. What does the lack of reaction of traders to this data mean? First, perhaps, markets are tired of reacting to dollar purchases of new US trade sanctions. Potentially, there can be many more and if each time the dollar grows, it will eventually lead to the fact that the world will have one currency. Secondly, it seems that the markets still realized that the US economy and American companies and ordinary citizens are also beginning to suffer from sanctions, which can not have a favorable impact on the economy as a whole.
In general, the recommendations on the tool remain the same and technical indicators are doing an excellent job now with their task and eloquently indicate the preservation of an uptrend. Thus, we continue to trade on the trend, continuing to monitor the news from the US president and the Chinese government, which in the near future can respond with countermeasures against America.
Trading recommendations:
The GBP / USD currency pair retains its growth prospects, but it can not be overcome by the first target of 1.3175. If this level is passed, then, the target for the long will be the resistance level of 1.3255.
Kijun-sen line, above which there are high chances to continue the uptrend. In this case, the target for the sell-positions will be the level of 1.2928 or the Senkou line Span B.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations to the illustration:
Ichimoku Indicator:
Tenkan-sen is a red line.
Kijun-sen is a blue line.
Senkou Span A is a light brown dotted line.
Senkou Span B - a light purple dotted line.
Chikou Span is a green line.
Bollinger Bands Indicator:
3 yellow lines.
MACD indicator:
Red line and histogram with white bars in the indicator window.The material has been provided by InstaForex Company -
www.instaforex.com