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: 145.2824
The currency pair GBP / USD on Thursday, January 24, continues to grow steadily and overcame Murray's level of 6/8 - 1.3062. As we have repeatedly written, now we should not look for the reasons for the strengthening of the pound sterling. There are no pronounced reasons. It is recommended to simply follow the trend, especially since he is confident. Yesterday it was reported that if the parliament does not approve Theresa May's proposal for Brexit by the end of February, the British MPs will initiate a postponement of the country's withdrawal from the EU. Thus, something that a year ago nobody expected could happen. It will be just a postponement of the exit date from the TC, and it will be possible to negotiate with the EU for another couple of years. That is, as it turns out in practice, no one is particularly in a hurry to complete this "divorce". The "hard" version of Brexit does not suit anyone, remaining in the EU does not want the current government (but it may want the following if Theresa May still leaves his post), and the "soft" version of Brexit does not approve of the UK Parliament, considering that there are too many concessions to the EU. And the European Union does not want new negotiations, believing that it offered London the best possible conditions. The stalemate, which can now drag a couple of years. The pound simply stopped responding to this kind of information.
Nearest support levels:
S1 - 1.3062
S2 - 1.3000
S3 - 1.2939
Nearest resistance levels:
R1 - 1.3123
R2 - 1.3184
R3 - 1.3245
Trading recommendations:
The currency pair GBP / USD continues to move up. Therefore, purchase orders with targets at 1.3123 and 1.3184 are relevant now. Turning the Heikin Ashi indicator down will signal a manual reduction of long positions.
Orders for sale will become relevant not earlier than overcoming the moving average line. 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 1.2878.
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