4 hour timeframe
Technical details:
Higher linear regression channel: direction - up.
Lower linear regression channel: direction - sideways.
Moving average (20; smoothed) - down.
CCI: -84.5302
The GBP / USD currency pair rebounded from Murray's "4/8" level and corrected to the moving average line, which failed again to reached it. At the moment, the downward movement resumed, which was highly expected since there are still no fundamental prerequisites for a change of trend. There is no new data on the Brexit negotiations and there is no noteworthy data from the British Parliament has been reported either. The issue with the Northern Ireland border remains open. The question of a possible extension of the transition period remains open. The position of Theresa May is becoming more precarious every day. In general, there are still no clarifications on key issues. In such a situation, it is difficult to count on more or less serious strengthening of the British currency, thus, the downward trend of the pair continues. o date, there is no major macroeconomic publications have been scheduled in the UK. In the US, the so-called "Beige Book" will be published in the evening, but it rarely causes any reaction of traders. Thus, for the GBP / USD pair, the key factor in determining the current trend remains technical. The trading system of "Regression Channels" clearly indicates a continuation of the downward movement and one of the linear regression channels may turn down in the near future.
Nearest support levels:
S1 - 1.2939
S2 - 1.2878
S3 - 1.2817
Nearest resistance levels:
R1 - 1.3000
R2 - 1.3062
R3 - 1.3123
Trading recommendations:
The GBP/USD pair resumed its downward movement after a slight correction. Thus, now short positions are again relevant with the goal of 1.2939, which was already been achieved. The Heiken Ashi turn up will point to a new round of corrective movement.
Buy orders will become relevant only after the bulls are fixed above the moving average line. However, there are no significant prerequisites for increasing the demand for the British pound - neither technical nor fundamental.
In addition to the technical picture should also take into account the fundamental data and the time of their releaseIt should be noted.
Explanations for illustrations:
The higher linear regression channel is the blue lines of unidirectional movement.
The lower linear channel is the purple lines of unidirectional movement.
CCI is a 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.
Heiken Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com