4-hour timeframe
Technical details:The senior linear regression channel: direction - sideways.The younger linear regression channel: direction - up.Moving average (20; smoothed) - down.CCI: -100.6090The currency pair GBP / USD on Friday, November 16, is trying to start a correction against a strong downward movement the day before. The new fall of the pound sterling was provoked by two more resignations in the British Parliament. Earlier, we wrote about the resignation in protest against the policy of Theresa May, Dominic Raab, Minister for Brexit. Following him, a letter of dismissal was written by the Minister for Northern Ireland, Shailesh Vara. All this looks like a flight from a sinking ship. Immediately four ministers did not want to be involved in the version of Brexit, which Teresa May strongly promotes. May herself said at a press conference that she was not afraid of a possible resignation and she intends to finish the job (Brexit). Thus, if a week ago, traders were overwhelmed with optimism, since there was hope for an early conclusion of the "deal" and the completion of the whole epic called Brexit, now a situation arises that is unknown how this will end. Ahead of the parliament to vote for the bill May. Not the fact that it will be accepted. Not the fact that in the near future, May will not be dismissed. For pound sterling, this does not bode well. A new round of political crisis will put pressure on the British currency. On the last trading day of the week, there are no important scheduled macroeconomic reports in the UK or in the States.Nearest support levels:S1 - 1,2756S2 - 1.2695S3 - 1.2634Nearest resistance levels:R1 - 1.2817R2 - 1.2878R3 - 1.2939Trading recommendations:The currency pair GBP / USD resumed its downtrend. Thus, a correction is now possible, as indicated by Heikin Ashi, after which it will be possible to resume trading for a fall with the target Murray levels of 1.2756 and 1.2695.Buy orders are recommended to be considered only above the moving average line with the target of 1.3062. However, as before, there are no fundamental reasons to expect a strong strengthening of the British currency.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.
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