4-hour timeframe
Technical details:
The upper linear regression channel: direction - sideways.
The lower linear regression channel: direction - down.
The moving average (20; smoothed) - sideways.
CCI: -11.2709
On Tuesday, May 7, the British pound adjusted to the moving average line. The further fate of the pound will depend on whether traders can overcome the moving. A rebound from it will mean a possible resumption of the upward movement, although, as we have said more than once, there are few fundamental reasons for strengthening the pound. Meanwhile, British Prime Minister Theresa May continues to persuade parliamentarians of the expediency of accepting her "deal" with the EU. By and large, it has nothing else to do after the EU has made it clear that it will not revise the current version of the agreement. But from the outside, all these beliefs of Theresa May's members of Parliament and the calls to "unite", "forget about differences" in a "difficult period for the country" look a bit comical. The head of the country should find solutions in difficult issues, as well as enjoy the unconditional support of the majority. However, the local elections in the UK, two votes of no confidence, the constant talk of resignation and the inability to bring Brexit to a logical conclusion suggests otherwise. All this drives the UK into an even greater political crisis. Should we expect the growth of the pound in such conditions?
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 pair GBP/USD continues to be adjusted after Friday's growth. Thus, it is recommended to consider buy orders with the target at 1.3123, as the upward trend continues.
It is recommended to consider sell positions only after fixing the pair below the moving with the first targets at 1.3000 and 1.2939, which is more logical from a fundamental point of view.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The upper linear regression channel is the blue lines of the unidirectional movement.
The lower 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.
Heiken Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com