4-hour timeframe
The amplitude of the last 5 days (high-low): 73p - 74p - 89p - 62p - 77p.
Average amplitude for the last 5 days: 75p (73p).
Boris Johnson won the first round of voting for the future leader of the Conservative Party after Theresa May left. Out of 313 possible votes, Boris Johnson scored 114. The closest competitors Jeremy Hunt and Michael Gove scored 43 and 37 votes. Three out of ten candidates for the post left the race, seven went to the second round. Only two applicants should remain until June 20, after which the entire Conservative Party will vote for one candidate or another, not just the Tory deputies of the House of Commons. It is difficult to say whether this is good news for the pound or something bad. Traders did not respond to the election results in the first round. Moreover, the pound/dollar pair frankly went to the side channel, which displays the indicator Bollinger Bands. Now the pair is at the bottom of the side channel. According to the logic of things, in the event of a rebound from it, it will rise to the upper Bollinger band. No other important news for the pound sterling or the US dollar was received at the disposal of traders today. Thus, sluggish and inactive trading in a currency pair is expected. As for the future of Brexit, even with the hypothetical victory of Boris Johnson in the elections, the situation is not clear. The new prime minister will have the same choice as Theresa May: "hard" Brexit or an agreement with the EU. True, Johnson wants new negotiations with Brussels, but Brussels himself has to take this step, who has already officially declared his unwillingness to revise the agreement reached with Theresa May. Thus, Johnson may want a lot, the European Union must go to meet him in order to fulfill his wishes.
Trading recommendations:
The pound/dollar currency pair returned to the area below the Kijun-sen line, and Bollinger bands signal a flat at all. Therefore, we recommend not to trade on the pair until the end of the sideways movement.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of the illustration:
Ichimoku indicator:
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.
MACD Indicator:
Red line and histogram with white bars in the indicator window.
