4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - up.
CCI: 161.2133
The currency pair GBP / USD on Monday, January 14, continues its upward movement, despite the upcoming vote in the British parliament, which is not known how to complete it. On Friday, the pair pushed away from the moving average line, which provoked a resumption of the upward movement. To say that macroeconomic reports contributed to this is quite difficult. If the UK GDP for November was slightly higher than the forecast, + 0.2%, then industrial production failed miserably. In general, we consider the Friday strengthening of the pound sterling, perhaps even an accident. However, one way or another, for the British currency comes the hour X. Unless, of course, Theresa May again transfers the vote to another date. In the meantime, about 100 deputies of the European Parliament turned to British citizens with a proposal to rethink Brexit and cancel it. Theresa May, on the other hand, noticed that the rejection of her plan by "Checkers" would be a "catastrophic undermining of trust in democracy". Also in May's rhetoric, the words "or remain in the EU" appeared. That is, now Theresa May admits even the option of the country's refusal to withdraw from the EU if the parliament blocks its initiatives. The prime minister notes that parliamentarians cannot do this to citizens who voted "for" withdrawal from the EU, probably "forgetting" that there were about the same number of opponents of leaving the EU.
Nearest support levels:
S1 - 1.2817
S2 - 1.2756
S3 - 1.2695
Nearest resistance levels:
R1 - 1.2878
R2 - 1.2939
R3 - 1.3000
Trading recommendations:
The currency pair GBP / USD resumed its upward movement. Thus, purchase orders with targets of 1.2878 and 1.2939 are still relevant. Turning the Heikin Ashi indicator down will signal a manual reduction of long positions.
Sell positions are recommended to be considered after fixing the price below the MA. In this case, the initiative on the instrument will go into the hands of bears, and the first target for short positions will be the level of 1.2695.
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