4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: 83.9448
The currency pair GBP / USD with great difficulty continues to trade slightly above the MA. Murray's "8/8" pair could not be overcome. There are no grounds for the growth of the British currency. The British Parliament went on vacation. The issue with Brexit is not resolved. The issue with the next vote of no confidence in Theresa May is not resolved. In general, there are still a lot of uncertainties. And in the next two weeks, the period of the New Year and Christmas holidays, they will continue. In the meantime, there is every reason to believe that the EU and the UK have begun to prepare for the "tough" version of Brexit. Both sides understand that the British Parliament's rejection of the Checkers plan is extremely high, as well as the likelihood that Theresa May will leave her post. Therefore, they began to prepare for the worst scenario. But, as we already wrote earlier, for the British currency now any decision of parliament will be a positive moment. Pound needs certainty, as uncertainty is worse than negative news. On Friday, December 21, the UK is scheduled to publish GDP for the third quarter. Forecasts are absolutely neutral, because data from the States, in particular, a report on orders for durable goods, can have a greater impact on the movement of a currency pair.
Nearest support levels:
S1 - 1.2634
S2 - 1.2573
S3 - 1.2512
Nearest resistance levels:
R1 - 1.2695
R2 - 1.2756
R3 - 1.2817
Trading recommendations:
The currency pair GBP / USD continues to be held above the MA. Thus, formally, purchase orders with targets of 1.2695 and 1.2817 are relevant now. But the growth potential of the British currency is very small, so it is recommended to trade in a rise in small lots.
Sell orders are recommended to open if the pair consolidates below the moving average line. In this case, the targets for the downward movement will be the levels of 1.2573 and 1.2512.
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