4 hour timeframe
Technical details:
Senior linear regression channel: direction - down.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -51.2774
The currency pair GBP / USD on Thursday , November 22, resumed the downward movement, having failed to overcome the moving average line. Thus, the upward correction It is completed and there are practically no obstacles for the new fall of the pound sterling.
The markets are disappointed and also fearful of the UK Finance Minister Philip Hammond. He believes that the likelihood that Parliament will not approve since Theresa May's Brexit plan is quite high. He also said that the lack of consensus on a number of key issues could bring the political situation in the country into chaos. n principle, this is what we have repeatedly written about. Theresa May can verbally reach any agreement with the European Commission, however, if Parliament doesn't approve her proposals, it will mean the failure of the entire Brexit procedure. As we see, 5 ministers have already left their posts in protest against Theresa May, 5 out of 25. This is a lot. Voting in parliament will take place in December which means that the entire procedure and the uncertainty associated with this is delayed by about another month. All this still will not work in favor of the British pound. Especially considering the possible blocking of Brexit by Spain, which expresses its dissatisfaction with the lack of specific conditions for Gibraltar in the Brexit document.
Nearest support levels:
S1 - 1,2756
S2 - 1.2695
S3 - 1.2634
Nearest resistance levels:
R1 - 1.2817
R2 - 1.2878
R3 - 1.2939
Trading recommendations:
The pair GBP / USD resumed its downward movement. Thus, now the pair is again recommended to trade for a fall with the first goal of 1.2756 and the second - 1.2695. Heiken Ashi's upward will indicate a turn of corrected movement.
Long positions are still not relevant either from a fundamental or from a technical point of view. Overcoming the MA will allow the bulls to count on strengthening the pound sterling. But so far, there is no reason for this option.
In addition to the technical picture, you should also consider the fundamental data and the time of their release.
Explanations for illustrations:
The senior linear regression channel is the blue lines of unidirectional movement.
The junior linear channel is the purple lines of 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.
Heiken Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com