GBP / USD. January 8. The trading system. "Regression Channels". In Britain, they are preparing for a "tough" Brexit.

4-hour timeframe

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Technical details:

The senior linear regression channel: direction - down.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - up.

CCI: 85.8275

The currency pair GBP / USD on Tuesday, January 8, maintains an upward mood. All losses of the pair dated January 2 have already been restored, so, as in the case of the euro currency, the question arises: which way to go further? On the one hand, there are no grounds for a new growth of the pound sterling, especially in the run-up to the Parliament's vote on Brexit, which will be held on January 15. On the other hand, there are no new reasons for the fall of the pound either, since again, nothing has been decided and understood by Brexit. Therefore, we believe that, at least until January 15, the pair will continue to trade between the levels of 1.2756 and 1.2512. Theresa May, meanwhile, led the Cabinet Committee on preparing the country for the "tough" version of Brexit. The work of this committee will be related to the preparation of the government to leave the EU without agreement, as well as contact with the authorities of the EU countries. From our point of view, this is a very remarkable event, as it seems that Theresa May has resigned herself to the fact that Parliament will not accept her Brexit bill. Against the background of this information, up to January 15, the pound sterling can just show a moderate decline, but everything will be decided on January 15, when it becomes unequivocally clear what awaits the UK in the coming years.

Nearest support levels:

S1 - 1.2756

S2 - 1.2695

S3 - 1.2634

Nearest resistance levels:

R1 - 1.2817

Trading recommendations:

The currency pair GBP / USD continues to move up. Now, thus, relevant buy-positions with a view to 1.2817. The color of the Heikin Ashi indicator 1-2 bars in blue color will indicate a correction and will serve as a signal for manual closure of long positions.

It is recommended to open short positions only after traders have overcome moving averages. In this case, the trend in the instrument in the short term to change to a downward, and the targets will be the levels of 1.2634 and 1.2573.

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