GBP / USD. November 23. The trading system. "Regression Channels". The pair may again go into decline due to strong resistance

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - sideways.

CCI: 98.0612

The currency pair GBP / USD on Friday, November 23, was fixed above the moving average line thanks to the information that the UK and the EU reached a consensus on all issues relating to Brexit. However, after an impressive breakthrough to the top, the momentum disappeared, which, from our point of view, is quite logical. The fact is that, by and large, this "complete agreement" will not matter if Brexit is not approved by at least one of the EU member states. Now, it is already known that Spain, which has differences with Great Britain over Gibraltar, can do this. Also, do not lose sight of the fact that the treaty on Brexit must approve the British Parliament. Thus, we believe that the strengthening of the pound sterling is extremely short term. No important macroeconomic reports are expected from the UK on the last trading day of the week. But at the same time, new information on Brexit can come in, which has remained the main one for the British pound for already long months and can still influence the national currency of Albion for a long time. If there are no new messages from Theresa May and the EU leaders, the currency pair can start declining today, as Murray's level of "3/8" has been tested for strength for the fourth time and is still not overcome.

Nearest support levels:

S1 - 1.2817

S2 - 1.2756

S3 - 1.2695

Nearest resistance levels:

R1 - 1.2878

R2 - 1.2939

R3 - 1.3000

Trading recommendations:

The currency pair GBP / USD has started an upward movement, which can be very short-term. If traders manage to overcome the level of 1.2878, the purchase order can be opened for the purpose of the level of 1.2939.

Sell positions will become available again for opening in the event of a price fixing below the moving average line with a target of 1.2756. This is a more likely scenario for the instrument, if there is no new information supporting the pound sterling.

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 -