4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - up.
CCI: 87.7884
The GBP / USD currency pair rolled back on Friday, November 2, from its local maximum due to positive macroeconomic statistics from the States. NonFarm Payrolls turned out to be much better than traders expected, the unemployment rate remained at the same, the minimum level of 3.7%. However, the business activity index in the UK construction sector also exceeded the forecast value of 52 and amounted to 53.2 in October. Thus, the effect of NonFarm Payrolls was slightly leveled. However, the uptrend, while short-term, persists. Meanwhile, Theresa May managed to negotiate a customs union with the EU. It is expected that the UK will remain in it after Brexit. Unfortunately, there is no new data on the question of the Northern Ireland border, and this, we recall, remains the main stumbling block in the negotiations. Thus, by and large, it is still too early to talk about the successful outcome of the negotiations on Brexit. Although we note the obvious progress in the negotiations in recent weeks. The likelihood that the parties will still come to an agreement has increased significantly. There remains, however, one very important question. How will the public respond if May succeeds in reaching an agreement with the EU on her plan? We will remind that earlier in London, a rally was held against the May plan, and signatures were gathered for holding the second Brexit referendum precisely because there are so many opponents of leaving the EU under the conditions that May is promoting.
Nearest support levels:
S1 - 1,2939
S2 - 1,2878
S3 - 1.2817
Nearest resistance levels:
R1 - 1.3000
R2 - 1.3062
R3 - 1.3123
Trading recommendations:
The currency pair GBP / USD has begun to be adjusted. Thus, for the resumption of trading with the aim of 1.3062, it is recommended to wait for the Heikin Ashi indicator to turn up.
Sell positions will again become relevant no earlier than the price fixing below the moving average line. In this case, we can expect the formation of a new downtrend with the first goal of 1.2817.
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