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: -175.9702
The GBP / USD currency pair continues its downward movement, which began the day before, after the next "favorable" actions of Theresa May. The British Prime Minister this time canceled a vote in parliament on her own Brexit bill, explaining that "now is not the time to vote." When "there will be time", May didn't specify, as well as why "now is not the time". In general, the collapse of the pound sterling, given the actions of the head of the country, is not at all surprising. Now, the whole epic called "Brexit" is delayed for an indefinite period. We have repeatedly written that the pound needs certainty. Let there be already an unregulated exit from the EU, but traders and the entire public will already clearly understand and realize what path the UK is waiting for the coming years. And so the whole situation remains in limbo. Today in the UK, the unemployment rate and the change in average wages with and without premiums will be published. However, these reports are unlikely to provide strong support for the British currency. The maximum that a pound can count on is a technical correction, and even that is not too strong. We continue to wait for new messages from Theresa May and other parliamentarians of the United Kingdom.
Nearest support levels:
S1 - 1.2512
S2 - 1.2451
S3 - 1.2390
Nearest resistance levels:
R1 - 1.2573
R2 - 1.2634
R3 - 1.2695
Trading recommendations:
The currency pair GBP / USD has resumed a strong downward movement. Thus, before the Heikin Ashi indicator turns up, which would mean the beginning of an upward correction, sell-positions with targets of 1.2512 and 1.2451 are relevant.
Buy orders are recommended to open no earlier than fixing the price above the moving average with the first targets of 1.2756 and 1.2817. In this case, the tendency for the instrument to change to ascending.
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