4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -123.1797
The GBP / USD currency pair, after a minimal correction, resumed a rather strong downward movement. It is difficult now even to suppose that it can save the pound sterling from new falls in the coming days and weeks. The British Parliament received information that the Brexit vote will be held until January 21. The exact date is not called. Thus, even more than a month, the pound sterling, like the whole of Great Britain, will be in limbo. On the pound sterling, it can only be reflected from the negative side. We have repeatedly noted that in the current conditions, the pound requires at least some decision on Brexit, certainty is needed. Theresa May fears that her plan will be rejected by Parliament, and will probably spend the coming weeks negotiating with opposition forces, trying to convince them or reach an agreement with them. Yesterday's macroeconomic reports in the UK supported the pound for just a few hours. Wages in the country in October rose by 3.3%, although forecasts were no more than 3.0%. At the same time, the number of applications for unemployment benefits exceeded the forecast. Today, there are no major events planned in Britain at all, so all attention is paid to the speech of Jerome Powell and the inflation report for November in the USA.
Nearest support levels:
S1 - 1.2451
S2 - 1.2390
S3 - 1.2329
Nearest resistance levels:
R1 - 1.2512
R2 - 1.2573
R3 - 1.2634
Trading recommendations:
The currency pair GBP / USD continues a strong downward movement. Thus, before the Heikin Ashi indicator reverses to the top, which would mean a round of upward correction, sell-positions with targets of 1.2451 and 1.2390 are relevant.
It is recommended that long positions be considered not before the bulls overcome the moving average line, however, as before, this will require serious fundamental reasons.
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 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