4 -hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - down.
CCI: -138.9756
The GBP / USD currency pair continues its downward movement in anticipation of the announcement of the EU summit results. Meanwhile, European Parliament President Antonio Tajani told the press that Theresa May did not submit any new proposals for the Brexit terms. This can mean two things. First, Theresa May pulls time. This option is possible, as the British Premier needs to think not only about how to negotiate with the EU, but also about how to get support under the Brexit plan in the UK Parliament. Thus, it cannot make concessions, and in this case, it remains almost the only option. The second is that there are no new proposals, and there will not be, since Theresa May knows for sure that the new plan will not support Parliament. In general, the situation is still a stalemate, and the likelihood that there will be no deal between the EU and Britain is growing every day. The pound sterling responds to this data quite logically. Most of the pound's take-off periods in recent months have been associated precisely with "insider" information that the parties are close to signing an agreement. However, it was not confirmed. And now, when official negotiations are underway, and no optimistic information is being received, traders reasonably believe that the parties have again reached an impasse. Today in the UK, a report on retail sales will be published. Weak data could put even more pressure on the British currency.
Nearest support levels:
S1 - 1.3062
S2 - 1.3000
S3 - 1.2939
Nearest resistance levels:
R1 - 1.3123
R2 - 1.3184
R3 - 1.3245
Trading recommendations:
The currency pair GBP / USD continues to move down. Thus, it is now recommended to remain in short positions with targets at 1.3062 and 1.3000 until the Heikin-Ashi indicator turns to the top, which will mean a turn of corrective movement.
Buy-positions will become relevant with the aim of 1.3245 after the price is fixed back above the moving average. To do this, the pound will require very strong data on retail sales or information about the positive progress in the Brexit talks.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The senior linear regression channel is the blue lines of the unidirectional movement.
The junior linear channel is the purple lines of unidirectional movement.
CCI is the blue line in the indicator regression window.
The moving average (20; smoothed) is the blue line on the price chart.
Murray levels - multi-colored horizontal stripes.
Heikin Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com