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: -23.5206
The GBP / USD currency pair spent the last trading day in a purely technical correction to the moving average line. The pair has not managed to consolidate above the moving one, so there is a high probability of a rebound, from a technical point of view. However, on Friday, January 4th, much will depend on the published macroeconomic information in the United States. Today there will be several very important reports, in particular, NonFarm Payrolls, a salary report, and the unemployment rate, in which non-compliance of forecasts and real values can cause a tangible market reaction. Thus, in the American trading session, an increase in volatility and a sharp reversal is possible. There are no scheduled important publications in the UK today. No new information on Brexit is currently available. You can only mark the statement of Labor Party leader Jeremy Corbyn that he will refuse to vote for the draft Theresa May, probably, like his entire party. But this, however, is not such an important and unexpected news. The fact that Parliament is unlikely to support the Checkers plan has long been clear. In general, it is still extremely important for the pound to remain above 1.2480. Two times the bears tried to overcome this level, both times failed. Therefore, there are hopes that this is the bottom for the currency pair.
Nearest support levels:
S1 - 1.2573
S2 - 1.2512
S3 - 1.2451
Nearest resistance levels:
R1 - 1.2634
R2 - 1.2695
R3 - 1.2756
Trading recommendations:
The currency pair GBP / USD has adjusted to the moving average. In the event of a price rebound from this line, it will be possible to open new sell orders with targets at 1.2573 and 1.2512. It is recommended to trade in small lots, as the pair is still at its minimum values.
Buy positions are recommended to be considered after the price is fixed above the moving average line with targets at 1.2695 and 1.2756. Weak macroeconomic data from the United States today can support the British currency.
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