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: 120.6668
The currency pair GBP / USD on Tuesday, September 18, resumed and continues the upward movement, despite all the ups and downs associated with Brexit. Recall that the issue on the terms of the so-called "deal" with the EU remains open, but it seems that the entire theme is smoothly moving into the stage of the culmination. Firstly, Theresa May made an ultimatum to the politicians of the Parliament, in which she made it clear that either they would vote for her version of Brexit, or there would be no deal with Brussels at all. This statement may further lower the rating of the prime minister of Britain, but it is no longer up to the ratings. Now let's see how the Parliament reacts to such an ultimatum. Secondly, the IMF presented a report in which it is reported that the UK will suffer much more strongly from the EU in the event that there are no "deals" between the parties. Thus, the IMF, as it were, is pushing London to be more flexible in the negotiations. Anyway, until November everything should clear up. So far, the pound sterling of new pressure, which would be very logical, is not. The topic with a political scandal in the United States is of interest to traders much more. However, you should not overlook the Brexit theme. An important message can increase demand for the dollar and reduce demand for the British pound.
Nearest support levels:
S1 = 1.3123
S2 - 1.3062
S3 - 1,3000
Nearest resistance levels:
R1 = 1.3184
R2 = 1.3245
R3 = 1.3306
Trading recommendations:
The currency pair GBP / USD resumed its upward movement, as evidenced by Heikin Ashi. Thus, now it is recommended to trade on the rise with the targets of 1.3184 and 1.3245. Turning Heikin Ashi down will serve as a signal to manually close positions.
Short positions are recommended to be considered after fixing the price below the moving average line. Bears, in this case, are activated, but this will require strong fundamental data from the United States or London on the most important topics now.
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