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: 0.6388
The currency pair GBP / USD on Monday, December 10, frankly lurking. In recent days, the pound sterling has ceased to decline against the dollar, but it is also impossible to start an uptrend. Based on this, we conclude that traders are waiting, they are waiting for the most important event of the year for the UK, a vote on Brexit in parliament. A rally in support of Brexit was held in London this weekend, Theresa May threatened to leave the EU without any "deal", and some ministers and parliamentarians began preparations for a second referendum. Today, we will know the decision of the European Court regarding Article 50 of the Lisbon Treaty. According to preliminary information, the UK may well withdraw its desire to leave the EU unilaterally. Thus, on the eve of tomorrow's voting, there are several possible scenarios for the future: 1) the adoption of the Theresa May's plan, 2) the rejection of the Theresa May's plan, 3) postponing the vote in parliament to a later date, 4) the country's refusal to leave the EU. In such circumstances, it is impossible to predict the direction of the pair in the coming days. And technical factors will fade into the background. Also today in the UK, a report on GDP for October will be published, but it is likely to be ignored by market participants. It is a very important moment for the pound sterling, and traders must be ready for any movements in the market.
Nearest support levels:
S1 - 1.2726
S2 - 1.2695
S3 - 1.2665
Nearest resistance levels:
R1 - 1.2756
R2 - 1.2787
R3 - 1.2817
Trading recommendations:
The currency pair GBP / USD continues to be located below the moving average line. Therefore, sell-positions with targets at 1.2726 and 1.2695 are now formally relevant. However, we remind that in the coming days, the volatility of a pound can increase greatly, and the pair can dramatically change the direction of movement.
Purchase orders, again formally, will become relevant if the pair overcomes the MA. However, in the next few days, the tool can be thrown from side to side, and all this is accompanied by increased volatility.
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