4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - up.
CCI: 87.0873
The GBP / USD currency pair rolled back on Monday, November 5, resumed an upward movement, as evidenced by the purple bars of the Heikin Ashi indicator. Traders continue to buy a pound sterling on the next wave of rumors that London and Brussels are close to concluding a "deal". The more interesting the situation becomes, as we have repeatedly seen that the rumors about Brexit do not always correspond to the truth. One way or another, if the parties succeed in reaching a consensus on the issue of the Northern Ireland border, this will be a huge step towards signing a "deal". In this case, the reasons for buying a pound will be obvious. Otherwise, the British currency may come under new pressure from the market. In general, in recent years, a downtrend has formed on the pound, and it is possible that we will still see its new round. In general, for the British currency, X is approaching. Eternally, delaying the negotiations and postponing the final decision will not work. Theresa May's position, despite her assurances of progress, continues to fall. They are already talking about her resignation, and many people are dissatisfied with her plan for leaving the EU. Today, neither in the UK nor in the USA are there any planned macroeconomic publications, but the pound sterling can still continue its growth for the reasons described above.
Nearest support levels:
S1 - 1.3000
S2 - 1.2939
S3 - 1.2878
Nearest resistance levels:
R1 - 1.3062
R2 - 1.3123
R3 - 1.3184
Trading recommendations:
The currency pair GBP / USD resumed the upward movement. Thus, it is now recommended to trade on the increase with the objectives of 1.3062 and 1.3123. A reversal of the Heikin Ashi indicator will indicate a downward correction round.
Orders for sale with the aim of 1.2878 will become relevant not earlier than the pair is fixed below the moving average line. Only in this case it will be possible to talk about a change in the direction of the trend to the downward.
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