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: -29.1618
The GBP / USD currency pair continues lateral movement near the moving average line. Instrument volatility cannot be said to be low, but the absence of a trend can be seen with the naked eye. While there are no news and important reports on the subject of Brexit, there are no markets that continue to discuss with might and main, what will be the final decision of the British Parliament on Brexit? Since there is no new information on this issue, the chances of adopting or rejecting Theresa May's bill remain, in our opinion, 50/50. Theresa May, as is becoming clear now, relied on the hopelessness of the situation. That is, either the parliament supports its exit plan from the EU, or there will be no deal with the EU at all. However, it seems that the parliament is ready to leave the bloc without any agreements. The prime minister of Great Britain still has time to try to win over as many politicians as possible by agreeing to them. At the same time, given the 2 votes of no confidence in May, it's not a fact that she will manage to do this. In general, intrigue will persist until the last minute of this saga. A pound sterling can only wait for the "sentence". When it becomes known, traders will return to active trading in the GBP / USD currency pair.
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 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 positions is now 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. However, now on a pair of frank flat, that should be considered.
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