GBP / USD. February 14. The trading system. "Regression Channels". The European Commission assumes that Brexit will be rescheduled

4-hour timeframe

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Technical details:

The senior linear regression channel: direction - up

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -72.8037

The currency pair GBP / USD on Thursday, February 14, also resumed the downward movement, having previously worked out the moving average within the framework of the correction. A good report on inflation in the United States had a beneficial effect on the US dollar and paired with sterling. At the same time, only negative data from all calibers continue to come from the UK, ranging from information about the desire of a company to leave the UK or move its production capacity abroad, ending with new disappointing information about Brexit. A representative of the European Commission, Schinas, said yesterday that there is a possibility of postponing the UK's exit date from the EU. However, for this, London must submit a request, and EU leaders must unanimously approve it. However, so far no requests have been received from the EU. It seems that the option of postponing the date for Brexit is quite comfortable with the EU, which in this way can show harshness in negotiations regarding the conditions of a "divorce" at a long time and at the same time give food and time for reflection to British parliamentarians. From a technical point of view, the last bars are colored blue, so the downward movement is important.

Nearest support levels:

S1 - 1.2817

S2 - 1.2756

S3 - 1.2695

Nearest resistance levels:

R1 - 1.2878

R2 - 1.2939

R3 - 1.3000

Trading recommendations:

The currency pair GBP / USD completed a correction near the MA. Thus, short positions with targets of 1.2817 and 1.2756 are again relevant. A signal to a new round of correction will be the turn of the Heikin Ashi indicator upward.

It is recommended to open longs no earlier than traders overcome moving with the first target of 1.3000. From a fundamental point of view, this option is now unlikely, since there is still no positive news from the UK.

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 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