4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -62.2178
The currency pair GBP / USD on Tuesday, December 4, resumed the downward movement, once again failing to overcome the moving. So far, the currency pair has been trading near the local price lows, around the important support zone of 1.2700 - 1.2700. However, it seems that this area will not save the pound from a new fall. There is still plenty of time before the vote on the Brexit project in the UK Parliament. And all this time, the British currency will be in limbo, in a state of uncertainty. This means that sales, as before, are more preferable. Not to mention the fact that even from a technical point of view, downward movement is more likely, since all indicators are directed downwards. To date, in the UK, scheduled the speech of the head of the Bank of England Mark Carney. His last performance was remembered by many, as Carney said that he did not know what consequences the UK would have in the case of Brexit. In the case of a disordered Brexit, without a "deal", it will be even worse. Already, there are forecasts of rating agencies on a significant reduction in GDP by 2030, as well as the amount of annual monetary losses of the country due to its exit from the EU. This time, Carney, if he touches the Brexit topic at all, is unlikely to be optimistic and radically change his rhetoric. Therefore, in the best case for the pound sterling, the head of the Bank of England will simply not touch the subject of Brexit.
Nearest support levels:
S1 - 1.2726
S2 - 1.2695
S3 - 1.2665
Nearest resistance levels:
R1 - 1.2756
R2 - 1.2787
R3 - 1.2817
Trading recommendations:
The currency pair GBP / USD continues to be below the MA, therefore it is now recommended to continue to trade for a fall with targets of 1.2695 and 1.2634. One closed purple bar does not signal the beginning of a correction, as it is too small.
Buy positions with targets at 1.2817 and 1.2848 in small lots can be opened if traders overcome a moving average line. However,l the pound sterling has no fundamental grounds for more or less serious strengthening.
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