4-hour timeframe
Technical data:
The senior channel of linear regression: direction - down.
The younger channel of linear regression: the direction is up.
Moving average (20; flattened) - sideways.
CCI: -38.5072
Well, the Fed meeting was left behind, the Fed's key rate was raised for the third time in 2018, and the rhetoric of the cover letter was, as usual, optimistic. The US currency has risen slightly against the British pound on this news, but overall remained above the moving average line. Unlike the EUR / USD pair, there was no strong dollar appreciation at the Asian trading session. Thus, based on the technical picture, the upward movement can resume at any time. Today, the calendar of macroeconomic events contains several important news and reports. Firstly, today, the speech will be made by Mark Carney, the head of the Bank of England, and traders will closely follow what was said in order to understand his attitude in the protracted Brexit negotiations. Carney can also report something new on UK monetary policy and its possible changes if the Brexit negotiations fail. Further, in the United States, reports on GDP, orders for durable goods and an index of personal consumption expenditures will be published. These reports may cause even greater market reaction than yesterday's announcement of the results of the Fed meeting. Strong reports may help the bears push the moving around and try to form a new downtrend.
Nearest support levels:
S1 = 1.3123
S2 - 1.3062
S3 - 1,3000
Nearest resistance levels:
R1 = 1.3184
R2 - 1.3245
R3 = 1.3306
Trading recommendations:
The currency pair GBP / USD continues to be located slightly above the MA and is adjusted. Thus, it is recommended to wait for the signal of the completion of the correction (for example, turn Heikin Ashi up) and resume long positions with the target of 1.3245.
Short positions are recommended to be opened after traders overcome the level of 1.3123 with the target of 1.3062. Today's reports from the United States can support the dollar, which will lead to such consolidation and change in the trend for the instrument.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The upper channel of linear regression is the blue lines of unidirectional motion.
The junior channel is linear-violet lines of unidirectional motion.
CCI - the blue line in the regression window of the indicator.
Moving average (20; smoothed) - the blue line on the price chart.
Levels of Murray - multi-colored horizontal stripes.
Heikin Ashi is an indicator that color bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com