GBP/USD. 1st of May. The trading system "Regression Channels". Theresa May can lose the support of the Conservatives

4-hour timeframe

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Technical details:

The upper linear regression channel: direction - sideways.

The lower linear regression channel: direction - down.

The moving average (20; smoothed) - up.

CCI: 169.3072

The pair GBP/USD continues its upward movement. But much more interesting events are now taking place in the UK. It is not a secret for anyone that Theresa May made a bid for negotiations with the Labor Party in order to use her to still accept her version of the Brexit agreement with the EU. However, these negotiations, even if they succeed, may have the opposite effect. The fact is that the Laborists support the idea of a Customs Union with the EU, while the conservatives reject it. Consequently, if May succeeds in reaching an agreement with the Labor Party, yielding precisely to the question of the Customs Union, the number of votes from the conservatives may sharply decrease. Considering far to the best moods within this party, Theresa May may not get the necessary result on the next ballot anyway. However, so far this is just unverified information. We continue to monitor developments. The British pound has grown seriously in recent days, but we can not say that due to good fundamental reasons. Most likely, there is another technical correction. For the GBP/USD pair, today will also be extremely important, as today traders will receive a lot of interesting information from the States.

Nearest support levels:

S1 - 1.3031

S2 - 1.3000

S3 - 1.2970

Nearest resistance levels:

R1 - 1.3062

R2 - 1.3092

R3 - 1.3123

Trading recommendations:

The pair GBP/USD continues to move up. Thus, it is now recommended to consider long positions with targets at 1.3062 and 1.3092. Closer to the beginning of the publication of US reports and the results of the Fed meeting, increased caution is recommended.

Sell positions are recommended to be considered after the consolidation of the pair below the moving average with the first targets at 1.2939 and 1.2909. Given the degree of importance of fundamental data, the option of changing the trend today should not be excluded.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The upper linear regression channel is the blue lines of the unidirectional movement.

The lower 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.

Heiken Ashi is an indicator that colors bars in blue or purple.

The material has been provided by InstaForex Company - www.instaforex.com