Volumetric analysis on January 22
British Prime Minister Theresa May spoke about the intention to implement Brexit deal, allowing the possibility of changing the initial agreement conditions. But in her message yesterday, she clarified that she was not going to either extend the term of Brexit or hold a second referendum. It means nothing to the market, since nothing definite has appeared. But for it is good news, since events do not acquire new terms, and at the end of March we will already receive clarity and an appropriate reaction.
From the point of view of volumes, it is worth paying attention that yesterday's decline practically broke through support. For us, this is a sign of weakness of buyers and, accordingly, a long position should be abandoned, at least from most of it. The probability of a further decline has become greater, and, moreover, with the update of 1.28252, the probability of the appearance of an impulse associated with the triggering of the stops of some market participants is high. It will turn out to be true or false breakdown too early, but you can try to make money on this breakdown.
Yesterday we saw impulse downwards penetration. It seems that the seller’s initiative took a place. However, we should not forget that in the medium term we are in the side formation, which we could expect after the initial price growth. Therefore, trade ideas containing a sale will be considered ideas against the main trend at least for now. But still the price range 1282-1286 can be considered as resistance. With corrective growth in this area, you can search for entry points to the sale for at least 1276. But this will be a risky deal, as it is inside the outset. But on the other hand, while the price is below 1286, we can talk about the advantage of sellers over buyers. But the breakdown of support 1276-1270 will talk about the development of a downward trend, and if this happens today, from the next day we will consider the instrument as a falling one.
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