4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - up.
CCI: 56.3255
The currency pair GBP / USD on Wednesday, January 16, returned to the region above the moving average line, after yesterday's fall by 200 points on information that the British Parliament did not support Theresa May's Checkers plan. This was highly expected, but the gap in the number of votes is impressive: 432 deputies voted against, only 202 voted for. Thus, it is now clear that Theresa May did not have a chance to win initially since, in the month that passed when the first voting was to take place, one could hardly win over 100 deputies to her side. Now Theresa May has to submit a Plan B for three days, and the Labor Party leader Jeremy Corbyn has already introduced a vote of no confidence in the British Prime Minister. As for the pound sterling, then, as we warned, in the short term, the Brexit failure led to a sharp fall, but in the next few hours, the position of the British currency was restored. The British currency now needs certainty, and a certain amount of it was received yesterday, and in the coming days, it will become clear whether there will be early parliamentary elections and whether Theresa May will resign. Thus, the epic with the release of the United Kingdom from the European Union continues but gets a new turn.
Nearest support levels:
S1 - 1.2817
S2 - 1.2695
S3 - 1.2573
Nearest resistance levels:
R1 - 1.2939
Trading recommendations:
The currency pair GBP / USD resumed its upward movement. Thus, now long positions with the target of 1.2939 are again relevant. Today in Britain, inflation will be published in December, Mark Carney will deliver a speech, and in the evening, a vote will be held on confidence in Theresa May.
Sell positions will become relevant from a technical point of view no earlier than price fixing below the moving average line. The goal, in this case, will be the level of 1.2695, which was already worked out yesterday.
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