4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: -39.4195
The currency pair GBP / USD on Friday, November 9, corrected to the moving average line. So far, the upward trend in the instrument, in contrast to the EUR / USD pair, remains. The price rebound from the MA can trigger the resumption of the uptrend. Today in the UK, the publishing of the GDP in September, industrial production in September and a preliminary value of GDP for the third quarter are scheduled. Strong values of GDP can just help the pair to resume the upward movement. However, it should be noted that in the last week, the pound sterling has grown mainly due to the expectations of the signing of an agreement between the EU and the UK on Brexit. However, in recent days, no information supporting these expectations has been made available to traders. And so the euphoria of the market may be over. Continuing to buy a pound just on the rumors that the "deal" on Brexit is 95% consistent, is impossible. In general, despite the serious strengthening of the pound sterling in recent days, we believe that the pair has more chances to move down. Everything will depend on the last trading day of the week on overcoming or not overcoming the moving average line.
Nearest support levels:
S1 - 1.3000
S2 - 1.2939
S3 - 1.2878
Nearest resistance levels:
R1 - 1.3062
R2 - 1.3123
R3 - 1.3184
Trading recommendations:
The currency pair GBP / USD continues to be adjusted. A reversal of the Heikin Ashi indicator to the top at the location of the price above the moving will be a signal for the opening of new long positions with the goal of Murray's level of "7/8" - 1.3123.
Sell positions can be opened no earlier than fixing the price below the moving average line. In this case, the trend in the instrument will change to downward, and the target for the downward movement will be the levels of 1.3000 and 1.2939.
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.
Heikin Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com