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: -49.5259
The GBP / USD currency pair has also started to adjust, but the MA has not yet worked. On the night of Sunday to Monday, quite important and contradictory information was received on Brexit. British Prime Minister Theresa May said that an agreement with the EU was reached by 95%, which generated a new batch of debates among traders and the public in general. May's statement again looks like an attempt to calm everyone down. It is impossible to explain such optimistic words otherwise after two failures in the negotiations. On October 20, a protest rally was held in London, in which more than 100,000 people took part. The reason for the rally was the requirement to hold a new referendum on the country's withdrawal from the EU. The demonstration was led by the mayor of London Sadiq Khan, according to various sources, up to half a million people participated in it. According to Khan, Theresa May can now offer two options: either the complete absence of a "deal" with the EU, or a "deal" unprofitable for London. As it is not difficult to guess, opponents of both options are enough among the population of Albion, and within Parliament. Meanwhile, insider information appeared on the possible resignation of Theresa May. Tensions within the Conservative Party are growing and, according to unverified data, the necessary number of party deputies are already being recruited in order to dismiss May. However, most likely, they will not rush with this decision and will give May a deadline of March 29, the day when the UK should officially leave the EU.
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 is adjusted. Thus, it is recommended to open new sell orders after the Heikin Ashi indicator turns down or after the price rebounds from the moving with the goal of Murray's level of "5/8" - 1.3000
Buy positions will become relevant after the price is fixed above the moving with the goal of Murray's level of "8/8" - 1.3184. However, given the fundamental background coming from the UK, it will be quite difficult for the pair to continue moving up.
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 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