GBP / USD. February 8th. The trading system. "Regression Channels". Carney tried to calm the markets, but the effect may

4-hour timeframe


Technical details:

The senior linear regression channel: direction - up.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - down.

CCI: -58.0765

The currency pair GBP / USD on Friday, February 8, corrected to the moving average line, but could not overcome it and is preparing for the resumption of the downward movement. From our point of view, the strengthening of the British currency on the eve was completely illogical from the point of view of the nature of the statements made by Mark Carney at a press conference devoted to the meeting of the Bank of England. We wrote about this yesterday. But from a technical point of view, everything is justified. The usual correction to the moving average, after which the main movement should resume. Of course, there were some positive moments in Carney's speech. For example, the head of the Bank of England noted the growing real incomes of citizens. He also said that an unordered Brexit would not necessarily mean a reduction in the key rate. However, we believe that with such statements, Mark Carney wanted to calm the markets, which are already quite nervous in recent months. The loss of the pound sterling over the years of Brexit is already very tangible, the new Carney pigeon performance could have sent the pound to the lows of 2018. But we believe that the pound of this fate still cannot be avoided. There are no prerequisites for Theresa May to negotiate with EU leaders. The next vote on her Brexit project is likely to be postponed, with less than two months remaining until the final release date. No positive.

Nearest support levels:

S1 - 1.2939

S2 - 1.2878

S3 - 1.2817

Nearest resistance levels:

R1 - 1.3000

R2 - 1.3062

R3 - 1.3123

Trading recommendations:

The currency pair GBP / USD is trying to resume movement down. Therefore, now sell orders with targets of 1.2878 and 1.2817 are relevant again. Below the instrument moving, there is a downward trend.

Long positions are recommended to open in case of reverse fixing of the price above the moving average with targets at 1.3062 and 1.3123. But there are few fundamental grounds for a new pound fortification.

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 -