4-hour timeframe
Technical data:
The senior channel of linear regression: direction - down.
The younger channel of linear regression: the direction is up.
The moving average (20; flattened) is up.
CCI: 64.7896
The currency pair GBP / USD on Wednesday, September 12, is still traded above the moving average line, while maintaining a high probability of a further hike upward. From a technical point of view, the pair did not manage to overcome the level of Murray "6/8", so the correction for the purpose of moving the middle line began. And although the last two bars are colored purple with the indicator of Heikin Ashi, the correction can still continue. From a fundamental point of view, there is no new data on Brexit. Nevertheless, as it has already been two times in recent weeks, the slightest hint of progress in the negotiations between the EU and Britain from Theresa May or Michel Barnier, as well as other high-ranking officials, may cause a new demand for the pound sterling. The English currency is now confident with the news of a favorable expectation of the completion of the talks, although there is little optimism in the course of these negotiations. Key issues remain unresolved, and the parties persistently do not want to yield to each other. The political problems of Great Britain also have not disappeared. The chair under the premier of the United Kingdom Theresa May continues to stagger, and the number of dissatisfied with her policies and negotiations on Brexit continues to grow not only in Parliament and among the public, but also in its Conservative Party. Thus, the current growth of the pound looks very unstable. It seems that any negative news on Brexit will send the pound far down.
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 is corrected. The long positions are still recommended to be considered, and the nearest targets are 1.3062 and 1.3123. The completion of the correction can be determined by the formation of new 1-2 bars of purple color from the indicator of Heikin Ashi.
The sell-positions are recommended to be opened if the traders cross the moving middle line with the first target level of Murray "3/8" - 1.2878. In this case, the initiative will pass into the hands of bears, preceded by this may be negative news from the UK.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The upper channel of linear regression is the blue lines of unidirectional motion.
The junior channel is linear-violet lines of unidirectional motion.
CCI - the blue line in the regression window of the indicator.
Moving average (20; smoothed) - the blue line on the price chart.
Levels of Murray - multi-colored horizontal stripes.
Heikin Ashi is an indicator that color bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com