4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -104.8912
The currency pair GBP / USD on Tuesday, November 13, may begin a round of corrective movement, as evidenced by one closed purple bar. The strong oversold of the CCI indicator also indicates that the pair is ready for a correction. The question is how strong it will be. Only disappointing messages continue to come from the UK. Even the next optimistic statements of Theresa May no longer affect the market. This time, the British Prime Minister announced that negotiations were nearing an end, and that both sides wanted to reach an agreement. She noted that "national interests" are in the first place, so the negotiations and drag on. The "deal," according to May, will have to guarantee the UK the ability to enter into trade agreements around the world, as well as establish full control over borders and money. But Michel Barnier, the EU negotiator, said on Monday that an agreement with the UK had not been reached, and that the current progress in the negotiations was not sufficient to convene a new EU summit. Barnier also noted that he is waiting for a new proposal from the British side. As we can see, the parties continue to contradict each other, although they can be understood. Theresa May needs to save her political career, which could end in March 2019, when the time for Britain to leave the EU officially will come. Given the huge dissatisfaction with its policies and negotiations on Brexit, both in parliament and among the population, its attempts to convince everyone with all its might that negotiations are moving forward are very logical and expected.
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 continues the downward movement with the target of 1.2817. The color of the second bar in purple will be a signal to close the short positions, as in this case, a round of corrective movement to the moving will begin.
Orders for the purchase can be considered no earlier than fixing the price above the MA. In this case, the trend in the instrument will change to ascending, and the target for the upward movement will be the level of 1.3062.
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