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: -102.5748
The currency pair GBP / USD on Wednesday, November 28, continues to move down and broke the Murray level of "1/8" - 1.2756. The British currency came close to its local minimum, which is around 1.2700. Thus, the pair urgently needs positive fundamental information in order to maintain the chances of completing the downtrend near the 1.2700 level. If the fundamental assistance of the pound sterling does not wait, then, most likely, we are waiting for the continuation of the downward movement. The key problem for the UK and the pound sterling is the upcoming voting on the Brexit project in parliament, which will take place in December. It is already clear that Theresa May will find it extremely difficult to convince the right number of politicians to accept her Brexit plan. Too many opponents and the Brexit in the version proposed by the prime minister. At the same time, we believe that Ms. May will still be able to negotiate with the opposition. The fact is that there is no alternative to the May plan, by and large. Leaving the EU without a "deal" would be a much more negative option than with a "deal". Talk about the second referendum is still just talk. Thus, the parliament will have to choose precisely from two options. Either with a "deal" or without. All the talk about the reluctance of the opposition forces of the British Parliament to support Theresa May's project has a desire for its own benefit. That is, Theresa May just has to offer something to the Labor Party and the Scotland Party in exchange for supporting her Brexit project.
Nearest support levels:
S1 - 1.2695
S2 - 1.2634
S3 - 1.2573
Nearest resistance levels:
R1 - 1.2756
R2 - 1.2817
R3 - 1.2878
Trading recommendations:
The currency pair GBP / USD continues to move down. Therefore, it is now recommended to continue trading short positions with the goal of 1.2695. The color of 1-2 bars with the Heikin-Ashi indicator in purple will indicate the turn of the corrective movement.
Buy-positions will become relevant no earlier than fixing the price above the moving average line with the target at 1.2878. In this case, the British currency will receive a new chance to form an uptrend, but, as before, serious fundamental support will be required.
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