4-hour timeframe
Technical details:The senior linear regression channel: direction - down.The younger linear regression channel: direction - up.Moving average (20; smoothed) - down.CCI: -23.8138The currency pair GBP / USD on Tuesday, November 20, was stuck between the Murray levels of "2/8" and "3/8". Thus, we expect the pair to break out of this side channel. The price is in close proximity to the moving average line, from which a rebound may occur. In this case, the downward trend will be resumed. From a fundamental point of view, the pound sterling is entering a "storm" zone. In the near future, the British Parliament will vote for Theresa May's plan to leave the EU. At the moment, it is even difficult to guess how the voting will end. Although, of course, there is a little more chance that the bill will be adopted. Any new delay or the parliament's refusal to accept Theresa May's plan would mean a complete failure of the entire Brexit procedure. This is certainly not an option for the UK. Thus, most likely, "with a scratch", but the plan of May will be adopted. However, a whole lot of questions remain, ranging from the possible second referendum and the possible resignation of Theresa May to the parliament's refusal to accept May's plan and the new resignations of ministers, who thus disagree with the policy of the prime minister. In general, there can be a lot of news from Britain in the coming week, and each of them can cause sharp reversals of the pair and increased volatility. Today, the Bank of England's CEO Mark Carney will also give a talk, which is potentially an interesting and important event.Nearest support levels:S1 - 1,2817S2 - 1.2756S3 - 1.2695Nearest resistance levels:R1 - 1.2878R2 - 1.2939R3 - 1.3000Trading recommendations:The currency pair GBP / USD continues the upward correction. If the pair rebounds from the moving average line or Heikin Ashi turns down, it will be a signal to open new short positions with the target of 1.2817. However, we draw attention to the fact that in the coming days, frequent and sharp reversals of the currency pair are possible.Buy orders will become relevant after overcoming the traders pulling. However, in this case, in the coming days, the pair can often perform reversals, and all this may be accompanied by increased volatility.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.
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