4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - down.
CCI: -66.3903
The currency pair GBP / USD on Monday, February 11, is trying to resume its downward movement. Over the weekend, no new and important information on the Brexit issue was made available to traders. The head of the European Council, Donald Tusk, has already announced that there is no breakthrough in negotiations with Theresa May and reports that they will continue. He also focused on the fact that the UK has 50 days to leave the European Union. At the same time, the Labor Party seems to better understand what Theresa May wants and how she wants to achieve it. The party leaders are going to oblige Theresa May to vote on the "deal" with the EU before the end of February, no later. It seems that no one doubts that there will be no voting on February 13. This is done to prevent a situation in which there is very little time left until March 29 and the deputies will again be faced with a choice: either Theresa May's "deal" or Brexit's "tough" one. It seems that Theresa May is trying to implement just such a plan, realizing that otherwise, she will not be able to achieve a compromise. Today in the UK, data on GDP (a preliminary value for the 4th quarter and the final for December) will be published, as well as a report on industrial production for December. The forecasts for this data are very weak.
Nearest support levels:
S1 - 1.2878
S2 - 1.2817
S3 - 1.2756
Nearest resistance levels:
R1 - 1.2939
R2 - 1.3000
R3 - 1.3062
Trading recommendations:
The currency pair GBP / USD is trying to resume movement down. Thus, now it is still recommended to consider sell orders with a target of 1.2878. Manual reduction of short positions when the Heikin Ashi indicator turns up.
It is recommended to open long positions in case of a reverse fixation of the price above the moving with targets of 1.3062 and 1.3123. But there are still a few fundamental reasons for strengthening the British currency.
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