4-hour timeframe
Technical details:
The senior linear regression channel: direction - sideways.
The younger linear regression channel: direction - sideways.
Moving average (20; smoothed) - sideways.
CCI: -6.6280
The currency pair GBP / USD on Wednesday, November 14, entrenched above the moving amid reports that London and Brussels did come to an agreement on Brexit, but only at a technical level. Today, there should be a meeting in the British Parliament, where its members will vote and consider the draft version of this agreement. We believe that this event is extremely important. Since if the deputies do not accept Theresa May's plan, this negates all the progress in the negotiations with the EU. As we all know, there are enough opponents of the May plan, and recently, the number of those who are not willing to leave the European Union is growing. There is enough of them both among the population and in the parliament itself. Thus, the British prime minister will have to make every effort to ensure that this bill is passed. The whole process of finalizing the document may take a few more weeks. In the UK today, as well as in the United States, the report on the consumer price index for October will be released. It is expected that inflation will accelerate to 2.5%, which, again, can be regarded as a positive moment. Thus, there will be two important macroeconomic reports today, and in addition to them, it is recommended to constantly monitor any new information from the British Parliament. In the coming days, a pair of GBP / USD can be quite "stormy".
Nearest support levels:
S1 - 1,2939
S2 - 1,2878
S3 - 1.2817
Nearest resistance levels:
R1 - 1.3000
R2 - 1.3062
R3 - 1.3123
Trading recommendations:
The currency pair GBP / USD has overcome the moving, so from a technical point of view, long positions with a target of 1.3062 are now relevant. The fundamental factor at any time can change the mood of traders, so you need to be ready for a sharp turn down.
Sell orders will again become relevant not earlier than the bears are re-consolidated below the moving average. In this case, the trend in the instrument will again become downward, and the first goal will be the level of 1.2878.
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