GBP / USD. October 30. The trading system. "Regression Channels". British pound can sag even more

4-hour timeframe


Technical details:

The senior linear regression channel: direction - up.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -74.7572

The currency pair GBP / USD on the first trading day of the week could not show a more or less tangible correction. The minimum share of traders recorded part of the short positions, which led to the weakest upward correction. After that, the downward movement resumed and the pair overcame Murray's level of 2/8. Thus, from a technical point of view, the downward movement is likely to continue today. Important macroeconomic information is not expected from the UK today, but new data from the Parliament or on the subject of Brexit may unexpectedly come in. It is impossible to predict the performance of this or that politician, thus, it will be necessary to respond to possible events of this kind promptly. If no new information is received, then traders will rely when making trading decisions solely on technology. A technical picture remains unambiguous. A downward trend and the indicator Heikin Ashi, signaling a local downward movement. No interesting information is expected from America today either, so the fundamental influence on the pair's movement will be absent today.

Nearest support levels:

S1 - 1,2756

S2 - 1.2695

S3 - 1.2634

Nearest resistance levels:

R1 - 1.2817

R2 - 1.2878

R3 - 1.2939

Trading recommendations:

The currency pair GBP / USD continues its downward movement. Thus, short positions with a view to 1.2756 are relevant now. A reversal of the indicator Heikin Ashi up will serve as a signal to reduce the short positions, as it will mark the beginning of an upward correction.

Long positions will become relevant after overcoming the moving average by traders, which is not expected in the near future. Nevertheless, in this case, the trend in the instrument will change to ascending, and the first goal will be 1.2939.

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 the 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 -