GBP / USD. December 17th. The trading system. "Regression Channels". What will be the second referendum on Brexit?

4-hour timeframe

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Technical details:

The senior linear regression channel: direction - down.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -90.6678

The GBP / USD currency pair continues to be below the MA, maintaining the downward trend. Who could have guessed such a development on Brexit at the end of 2018? Two years ago, in a referendum, the opinion of the country's withdrawal from the EU won with a minimum margin. Two years later, when the UK came close to the date of withdrawal from the European Union, the country may well cancel Brexit, according to a European Court ruling, hold a second Brexit referendum or still leave the EU with or without a "deal". That is, in fact, it is even unclear whether the UK will take a general exit from the bloc? That time, it was reported that some conservatives were preparing a second referendum and without the consent of Theresa May. Insider sources claim that high-ranking politicians from Theresa May's party have already spoken on the topic of a new referendum with Labor and other opposition forces. Theresa May herself believes that the new referendum will damage the state policy. But what else could the prime minister say on this issue, who vehemently insists that Brexit should take place, and it doesn't matter with or without a "deal"? Pound sterling, meanwhile, continues to walk on the blade of the knife, bargaining near new lows.

Nearest support levels:

S1 - 1.2573

S2 - 1.2512

S3 - 1.2451

Nearest resistance levels:

R1 - 1.2634

R2 - 1.2695

R3 - 1.2756

Trading recommendations:

The currency pair GBP / USD continues the downward trend. Therefore, the turn of the indicator Heikin Ashi down will be a signal for the opening of new short positions with a target of 1.2512. The fundamental factor remains on the side of the American currency.

Buy-positions are recommended to consider the minimum lots with the target of 1.2695 if the pair manages to consolidate above the moving average line. However, even in this case, both linear regression channels will continue to be downward.

In addition to the technical picture, you should also consider 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 - www.instaforex.com