4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: -14.8919
The currency pair GBP / USD continues to calm trading without a certain direction. After completing Murray's level of +1/8, the pair turned down and began a downward movement, breaking the moving average line. Thus, today a downward movement is a little more likely, however, it should be noted that in recent days the pair has overcome the moving for the third time, but each time could not develop a downward movement. In the conditions of increased sensitivity of the market, as well as the festive status of the days remaining until the New Year, such a movement is quite expected and logical. No new data on Brexit or from Theresa May for the past day has been reported. Thus, although the instrument volatility has not decreased to a minimum, nevertheless, there are no weighty reasons for active trading among traders now. Today in the United States, there will be several insignificant publications. Theoretically, they can slightly affect the movement of the pair, but it is unlikely to affect its volatility. The reports are secondary, so there is no special reaction to wait. We believe that it will be better to resume trading in pairs after the holidays. Although the weakness of the movement and the absence of a pronounced trend can persist until a vote is taken in the British Parliament on Brexit.
Nearest support levels:
S1 - 1.2634
S2 - 1.2604
S3 - 1.2573
Nearest resistance levels:
R1 - 1.2665
R2 - 1.2695
R3 - 1.2726
Trading recommendations:
The currency pair GBP / USD has fixed below the MA, therefore at the moment, the minimal lots with targets at 1.2604 and 1.2573 are relevant. Opening any position is associated with increased risks, so before the end of the holidays, you can not enter the market.
Buy positions can be opened no earlier than price fixing above the moving average line. In this case, the long positions will become relevant also in small lots with targets 1.2695 and 1.2726.
In addition to the technical picture, you should also consider 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 the 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