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: -31.1977
The currency pair GBP / USD sank to the moving middle line and today it can overcome it. If this happens, the trend on the instrument will change to a descending order and sell orders will become actual. As for the fundamental component, nothing new can be noted here. No new data on Brexit, no new message on the topic of trade wars. No new messages from Donald Trump or Theresa May. It should be noted that in general, the pound sterling did not adjust very much against the US currency. The daily chart clearly shows that the price neatly worked from below moving and could not confidently overcome it. And the total correction is no more than 15% of the downtrend, which began on April 17. Thus, we make an almost unambiguous conclusion: traders still do not believe in the English currency and are ready to continue investing in the American currency. Any negative or disappointing message from the UK will lower the pound all the lower and lower. Any message from Trump about tightening trade duties against any of the partners or imposing new trade sanctions will again raise demand for the US dollar, especially in tandem with the British pound. On the first trading day of the week, only the index of business activity in the manufacturing sector of Markit in the UK can be distinguished from macroeconomic reports.
Nearest support levels:
S1 = 1.2817
S2 - 1.2695
S3 - 1,2573
Nearest resistance levels:
R1 = 1.2939
R2 = 1.3062
R3 = 1.3184
Trading recommendations:
The pair GBP / USD can overcome the moving today. In this case, it is recommended to open the sell-positions with the target of 1,2817, as the bears will seize the initiative in the market.
Orders for a purchase can be considered only in case of a rebound of the price from the moving and reversal to the top of the indicator of Heikin Ashi. Then the advantage will remain with the bulls, and the goal for the upward movement will be the level of 1.3062.
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