4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -117.1490
The GBP / USD currency pair continues its steady downward movement. The pair completed the Murray level of "3/8" - 1.2878 and could not overcome it the first time. Thus, there are technical grounds to expect an upward correction. Meanwhile, an unconfirmed information emerged that the British Cabinet of Ministers did not agree with Theresa May's plan for leaving the EU and openly announced this to her. True or not, it is difficult to say, but this information has appeared before. A smoke without fire, as we know, does not happen. Recall that many, both politicians and British citizens, are not satisfied with either the Checkers plan or the plan without a "deal" with the EU. Thus, the question arises, can Theresa May reach an agreement at the talks with Brussels, which will primarily be in the interests of the British population? After all, all the talk about a possible re-referendum indirectly indicates that the majority of the population is ready to remain in the EU rather than withdraw from it under conditions that will lead to a significant deterioration in living standards. As previously reported, the UK, even without officially leaving the EU, is losing a lot of money because of Brexit. What will happen when the "divorce" becomes official? Macroeconomic reports are not expected from the UK today, however, new information from Parliament may continue to appear, which will gradually clarify the situation around the British prime minister.
Nearest support levels:
S1 - 1,2878
S2 - 1,2817
S3 - 1.2756
Nearest resistance levels:
R1 - 1.2939
R2 - 1.3000
R3 - 1.3062
Trading recommendations:
The currency pair GBP / USD can start to be adjusted, as it could not overcome the level of 1.2878. Thus, to open new short positions, it is recommended to wait for either fixing the price below 1.2878, or turning down Heikin Ashi after the correction.
Buy orders can be viewed in small lots now with the aim of a moving average line. However, it should be remembered that the fundamental background is now completely on the side of the dollar and it is not necessary to count on a strong strengthening of the pound.
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 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 - www.instaforex.com