4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: 55.7283
The currency pair GBP / USD on Tuesday, February 19, with great difficulty remains slightly above the moving average line. However, in the near future, the pair may return to the area below the MA, as only disappointing messages continue to come from the UK. This time, the information concerns the meeting of Theresa May with some ministers, during which May called to agree to postpone Brexit to a later time, probably due to the fact that few people already believe in the opportunity to agree on the terms of Brexit for the remaining six weeks. Otherwise, the UK government may leave immediately 22 people - ministers and their deputies. Recall that during the past year, 5 ministers voluntarily left their posts. There are no other posts on the Brexit at the moment. The main thing for the pound sterling is that there are no positive messages. Does the question still remain on the agenda and on what basis does the pound grow? Today in the UK, data on the unemployment rate, the average wage and the number of applications for unemployment benefits in February will be published. The forecasts are very optimistic, especially in terms of wages (its growth rates are expected to accelerate), however, we believe that in practice, everything can be much worse. The UK is extremely rare in the last 2 years, we are pleased with positive macroeconomic statistics.
Nearest support levels:
S1 - 1.2878
S2 - 1.2848
S3 - 1.2817
Nearest resistance levels:
R1 - 1.2909
R2 - 1.2939
R3 - 1.2970
Trading recommendations:
The pair GBP / USD has fixed above the MA, therefore the trend in the instrument temporarily changed to ascending. Now it is recommended to consider long positions with targets of 1.2939 and 1.2970, but after turning Heikin Ashi upward.
Short positions will again become relevant after the price is fixed back below the moving average line. The targets, in this case, will be the levels of 1.2848 and 1.2817.
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