GBP / USD. February 6. The trading system. "Regression Channels". The secret meeting of the British Parliament. Compensation

4-hour timeframe

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Technical details:

The senior linear regression channel: direction - up.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - down.

CCI: -159.5340

The currency pair GBP / USD on Wednesday, February 6, continues its downward movement in the framework of the general tendency of strengthening the US dollar. Despite the fact that the parliament refused to postpone the exit from the EU to a later date, Theresa May repeatedly opposed this decision. Yesterday, there was information that the politicians held a secret meeting, at which it was decided to postpone the final Brexit date to the end of May. Probably, this decision was made in order to still be able to agree with the European Union on new conditions for withdrawing from the alliance. Of course, the mere fact of a postponement of Brexit does not mean that the parties will now resolve the issue of the Northern Irish border. Moreover, there is currently no official confirmation of this information. Therefore, the whole process remains in limbo, like the pound sterling. In the meantime, Ireland is demanding compensation for export losses that the country will incur as a result of Brexit. Every year the country exports goods to the UK at 4.5 billion euros. It seems that the European Union does not mind compensating for the damage, but this question is an additional "stick in the wheel." As previously stated by the Prime Minister of Scotland, Nicola Sturgeon, the UK is not ready to withdraw from the EU within two months. These words are very similar to the truth.

Nearest support levels:

S1 - 1.3000

S2 - 1.2939

S3 - 1.2878

Nearest resistance levels:

R1 - 1.3062

R2 - 1.3123

R3 - 1.3184

Trading recommendations:

The currency pair GBP / USD continues the downward movement, therefore, short positions with targets at 1.2939 and 1.2878 are now relevant. Heikin Ashi's upward reversal will indicate the beginning of an upward correction.

Orders for the purchase can be re-considered in the event of a reverse price fixing above the moving with the first target of 1.3123. However, so far this option is unlikely.

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