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: -214.4849
The currency pair GBP / USD on Monday, November 12, continues to strengthen the downward movement. It seems that the "good" days for the pound sterling are over. Just two news that came at the disposal of traders at the weekend, are good reasons to continue to sell the British currency. Firstly, despite Theresa May's conclusion that the Brexit agreement is 95% ready, the European Union rejected another Premier's proposal to preserve London's membership in the Customs Union after the country's withdrawal from the EU. Thus, once again there are big doubts that the parties will be able to reach an agreement before November 21. Theresa May has already managed to cancel the meeting of the Cabinet of Ministers, at which the approval of her plan to leave the EU was to take place. In general, the next failure in the negotiations, and even the case did not come to the Cabinet of Ministers. The Cabinet could well not support the conditions proposed by May. Moreover, the opponents of the "May Plan" abound, as well as the opponents of Brexit itself. On Monday, there are no important macroeconomic reports scheduled in the UK and the States, but, as we see, there is plenty of news coming from the UK.
Nearest support levels:
S1 - 1,2878
S2 - 1,2817
S3 - 1.2756
Nearest resistance levels:
R1 - 1.2939
R2 - 1.3000
R3 - 1.3062
Trading recommendations:
The currency pair GBP / USD continues its downward movement. The level of 1.2878 has been reached, and the target for short positions will now be the level of 1.2817. The Heikin Ashi is directed downwards, so at the moment, there are no signs of the beginning of the correction.
Buy orders will become relevant no earlier than fixing the price above the moving average line. Only in this case the tendency of the instrument to change to ascending, but now there are no fundamental grounds for this option.
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