GBP / USD. December 7th. The trading system. "Regression Channels". The pound is adjusted again but remains near its lows

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - sideways.

CCI: 57.8306

The currency pair GBP / USD on Friday, December 7, as well as the EUR / USD currency pair, fixed above the moving, and also failed to develop an upward movement. In the near future, the pair may return to the area below the moving average line and thus resume the downward trend. Today, the US currency can help macroeconomic reports from the United States, in particular, NonFarm Payrolls and changes in the level of wages for November. There are currently no new posts on the Brexit from the British Parliament. Probably, therefore, in recent days, the pound sterling is quite often adjusted, while maintaining the downward trend and not going far from its minimum. We believe that until December 11, when the Theresa May's Brexit vote results are known, the uncertainty will remain, and the GBP / USD pair will remain within the framework of the downward trend. It is impossible to predict the voting results, therefore, it is also extremely difficult to predict what will happen after December 11. Traders can only wait for the voting date in a cautious mode, and it will be possible to build new trading strategies for the coming weeks only after the announcement of the voting results. From a technical point of view, the pair is corrected, but this correction can be transformed back with a downtrend. But. Above the MA, small chances of strengthening the pound remain, especially if US reports fail today.

Nearest support levels:

S1 - 1.2756

S2 - 1.2726

S3 - 1.2695

Nearest resistance levels:

R1 - 1.2787

R2 - 1.2817

R3 - 1.2848

Trading recommendations:

The currency pair GBP / USD is within the correction. A color of 1-2 bars in purple with the Heikin Ashi indicator will signal a new round of upward movement with targets of 1.2817 and 1.2848. In this case, it will be possible to open small and short-term long positions.

Short positions will become relevant after the price is fixed back below the MA. In this case, the initiative will return to the bears again, and it will be possible to open sell orders with targets of 1.2695 and 1.2665.

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 -