4-hour timeframe
Technical details:
The senior linear regression channel: direction - sideways.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - up.
CCI: 6.7907
The currency pair GBP / USD on Thursday, January 31, is trying to resume an upward movement. However, the information received from the Fed meeting yesterday did not affect the movement of the pair too much, which is very surprising. The pound sterling has strengthened quite strongly in recent weeks, from our point of view, rather unfoundedly, so now traders are already seriously thinking over long positions. This is precisely the reason for the weak reaction to the fed pigeon rhetoric. It seems that traders are preparing for new serious sales of the pair, as the question on Brexit is still not resolved, Theresa May will have new negotiations with EU leaders, and the fact that the parties do not want a "tough" Brexit does not guarantee its absence in the future. By the way, European Commission President Jean-Claude Juncker has already stated that the decision of the British Parliament increases the chances of just an uncontrollable version of Brexit. French President Emmanuel Macron said that the current version of the Brexit agreement is the best possible and is not subject to revision. In general, Theresa May, who is already going to Brussels for new negotiations, will be extremely difficult to convince Europe of new concessions. The amendment adopted by the British Parliament, prohibiting withdrawal from the EU without an "agreement", means nothing in fact since if there is no agreement, there will be no "soft" Brexit.
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 has completed the correction. Thus, long positions with targets at 1.3123 and 1.3184 are now relevant, however, with long positions, we need to be careful now as the downtrend may begin.
Sell orders are recommended to open when the pair closes below the moving average line with the first target of 1.3000. In this case, the tool can proceed with the formation of a new downtrend.
In addition to the technical picture should also take into account 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