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: 82.9857
The currency pair GBP / USD resumed its upward movement on Wednesday, January 23, however, what is happening in the UK now correlates poorly with the nature of the movement of the pound sterling against the US currency. One gets the impression that traders have stopped paying attention to the nature of messages from Britain. Otherwise, they definitely would not ignore Theresa May's so-called "Plan B", which is now being discussed by all politicians and economists. Moreover, all experts agree that the "Plan B" is 90% different from the "Plan A". Thus, it is not clear what Theresa May, who is counting on, continues to push through her own Checkers plan, and all her beliefs of parliamentarians boil down to either her plan or withdrawal without a "deal". How parliament rejected Theresa May's resignation is unclear. But after the parliament got acquainted with the "Plan B", new conversations arose that if this option was rejected, the prime minister would definitely be asked to vacate the chair. New negotiations with the EU, which Theresa May is set up for, will end in failure with the same degree of probability as the vote on "plan B" in parliament. In general, a pound sterling is not getting cheaper by a miracle, it seems that only the "Shutdown" in the States saves the British currency from new shocks.
Nearest support levels:
S1 - 1.2939
S2 - 1.2909
S3 - 1.2878
Nearest resistance levels:
R1 - 1.2970
R2 - 1.3000
Trading recommendations:
The currency pair GBP / USD resumed its upward movement. Therefore, purchase orders with targets of 1.2970 and 1.3000 are now relevant. Turning the Heikin Ashi indicator down will signal a manual reduction of long positions.
Sell positions will become relevant no earlier than overcoming the MA. The initiative, in this case, will pass into the hands of bears, and the first target for the downward movement will be the level of 1.2817.
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