4 hour timeframe
Technical details:
Senior linear regression channel: direction - down.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -10.8979
In the case of the technical picture of the sterling pound, everything is much compared to the euro. The pound/dollar pair corrected to the moving average then rebounded from it. The Heiken Ashi indicator turned down and the downward movement resumed. However, from a fundamental point of view, everything remains extremely confusing. Half a year ago, everyone expected Brexit to take place on time (March 29) and this epic would be ended. Now, when two "extra" months have passed, it can be said that the country hasn't come close to getting out of the jurisdiction of Brussels one iota. Moreover, Theresa May will retire anyway. The current parliament showed only that it is not able to reach agreement on the most important issue for Great Britain in the past 10 years. Even the country's two main parties, Labor and Conservatives, could not agree at the time when this agreement was needed. First of all, by him, in order to maintain his credibility in the eyes of the electorate. The subsequent local and European Parliament elections showed perfectly what the disagreements between themselves and the inability to come to a common denominator cost both parties. Just yesterday, Labor leader Jeremy Corbin announced the need for a second referendum in order for the population to decide the fate of Brexit. Also, Corbin said that the situation can be saved by early parliamentary elections. Just yesterday, Labor leader Jeremy Corbin announced the need for a second referendum in order for the population to decide on the fate of Brexit. Also, Corbin said that the situation can be saved by early parliamentary elections.
Nearest support levels:
S1 - 1.2634
S2 - 1.2573
Nearest resistance levels:
R1 - 1.2695
R2 - 1.2756
R3 - 1.2817
Trading recommendations:
The GBP/USD pair has completed an upward correction. Thus, it is now recommended to resume sales of the sterling pound with targets of 1.2634 and 1.2573.
Long positions are recommended to be considered only after the pair has been fixed above the movement with targets of 1.2756 and 1.2817. However, the bulls remain fairly weak at the moment.
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 unidirectional movement.
The junior linear channel is the purple lines of 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