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: 46.7664
The GBP / USD currency pair has once again adjusted to the moving average line, but the bulls are still not strong enough to overcome it. The price rebound from the MA may trigger a resumption of the downward movement, however, its potential is now also limited due to the lack of new negative information on the Brexit topic. It should be said that in recent days, the Brexit theme has gone from the front pages of the media. Firstly, all deputies are preparing to go on vacation, respectively, no important decisions or statements from December 20 will come from the British Parliament. Secondly, Theresa May did everything possible to postpone the key moment for Britain at a later date (this is about parliamentary voting). Third, Theresa May is still walking along the blade of a knife. The media is filled with rumors that the prime minister will leave his post anyway after the beginning of the transition period. May received political immunity for only 1 year from her party, not from the entire House of Commons. In general, this whole situation is just paused at the moment. And after the new year may begin to discourage markets. Still not clear on what to count May, shifting the vote to January? Will she succeed in luring to her side the necessary number of deputies to pass the bill under the Checkers plan?
Nearest support levels:
S1 - 1.2573
S2 - 1.2512
S3 - 1.2451
Nearest resistance levels:
R1 - 1.2634
R2 - 1.2695
R3 - 1.2756
Trading recommendations:
The currency pair GBP / USD continues the downward trend. Therefore, turning the Heikin Ashi indicator down will be a signal to open new sell orders with a target of 1.2512. However, the new strong fall of the pound requires fundamental reasons, which are not yet available. Fall potential is small.
Buy-positions are recommended to consider the minimum lots with the goal of 1.2695 if traders manage to overcome the moving. Pound buyers are now extremely small, so the growth potential of the currency is also limited.
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