4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
Junior linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: 46.0113
The currency pair GBP / USD on Thursday, November 29, falling to the local minimum in the zone of 1.2700 - 1.2720, began an upward movement. It seems that below 1.2700, traders are not ready to open new sales of the pair, at least for now. The moment has come when new compelling reasons are needed for a new decline in the British currency. At the moment, such a reason can only be the failure of the Brexit procedure. And this, in turn, will be possible if the UK parliament blocks Brexit. Thus, we believe that before a vote in the British Parliament, the pound sterling will be in a relatively stable state without new falls. Of course, it is possible the arrival of new disappointing statistics from the Kingdom or other news that will trigger new sales of the pound. But while they are not there, there is a slight pause for the pound. Mark Carney, during his speech yesterday, expressed the opinion that Brexit could deal a severe blow to the economy. However, his words did not cause a new pressure on the pound. It is based on this factor that we believe that the first signs of the completion of the hegemony of the US dollar appear. Now everything will depend on the final stage of the Brexit procedure. If the parliament approves the "deal" with the EU, it will be a strong support for the pound sterling in the medium term.
Nearest support levels:
S1 - 1.2817
S2 - 1.2756
S3 - 1.2695
Nearest resistance levels:
R1 - 1.2878
R2 - 1.2939
R3 - 1.3000
Trading recommendations:
The currency pair GBP / USD has overcome the moving. Therefore, now have become relevant long positions in a pair with the goal of 1.2878. Despite our expectations of a downtrend completion, the pound positions are still very weak, so turning the Heikin Ashi indicator down may mean not only a correction, but also a resumption of the downward trend.
Sell positions can be considered no earlier than price fixing below the moving average line. In this case, the trend in the instrument will change to downward again, and the target for short positions will be the level of 1.2756.
In addition to the technical picture, you should also consider 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