4-hour timeframe
Technical details:
The senior linear regression channel: direction - sideways.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - up.
CCI: -32.8224
The currency pair GBP / USD on Wednesday, January 30, adjusted to the moving average, but the upward trend in the instrument remains. Yesterday evening was quite important, albeit somewhat formal for the UK. Voting on the Brexit project was postponed to February 13, but yesterday, they voted for several amendments to the draft agreement on withdrawal from the EU. And the first amendment, which was adopted, states that without an agreement with the EU, Brexit is prohibited. The second amendment removes the concept of "backstop" from the agreement. Third, it orders the British government to change the EU's position on the Northern Ireland border. What does it mean in fact? Nothing. All these amendments do not mean at all that the EU leaders will make new concessions and negotiations, but they mean exactly that. Now Theresa May needs to inform the EU leaders that the parliament is ready to pass the Brexit bill only on the conditions described above. That is, May will now pass the move to the European Union. Will the EU go to new negotiations, which doesn't need a tough Brexit too? In addition to the expected response from the EU, macroeconomic reports on changes in the level of employment in the private sector, US GDP, as well as the announcement of the results of the Fed meeting and the press conference is scheduled for today.
Nearest support levels:
S1 - 1.3062
S2 - 1.3000
S3 - 1.2939
Nearest resistance levels:
R1 - 1.3123
R2 - 1.3184
R3 - 1.3245
Trading recommendations:
The currency pair GBP / USD has started a new correction. Heikin Ashi's upward reversal will signal the opening of new long positions with targets at 1.3184 and 1.3245. Tonight, you will need to be ready for increased volatility in possible sharp reversals.
Sell positions are recommended to open if the pair manages to overcome the moving. In this case, the initiative will go into the hands of bears, and the first target for short positions will be the level of 1.3000.
In addition to the technical picture should also take into account 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