4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -23.9584
The currency pair GBP / USD on Tuesday, November 27, also resumed its downtrend, as traders did not find any reason to buy the British pound. It seems that there are times for the pound when market participants are ready to react with purchases only when they receive official and positive information from the UK. Thus, the information that EU leaders approved a document defining future relations between Britain and the EU after Brexit did not have any impact. Because now everything will depend on the British Parliament, which may well block the entire Brexit. The leader of the Labor Party, Jeremy Corbyn, has already indicated a desire to unite with other opponents of Brexit in order to block the bill of Theresa May. Thus, Mrs. May can negotiate arbitrarily with EU leaders, but if the British Parliament does not support its initiatives, then there will be no point in all this. That is why, in general, the pound sterling continues to decline with purely technical corrections. On the second trading day of the week, neither in the States nor in the UK are any important fundamental reports scheduled. The technical picture is clearly on the side of the American currency, so it is more preferable to continue to reduce the pair.
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 currency pair GBP / USD continues to move down. Therefore, it is now recommended to continue trading for a fall with targets of 1.2756 and 1.2695. The Heikin Ashi indicator will show the beginning of a new upward correction by turning to the top.
Long positions are currently not relevant, since all indicators signal a downward movement, and the pound has not had fundamental support for a long time. Fixing the pair above the MA allows considering the buy positions with the target of 1.2878 in small lots.
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