4 hour timeframe
Technical details:
Higher linear regression channel: direction - down.
Lower linear regression channel: direction - down.
Moving average (20; smoothed) - up.
CCI: 166.7511
The GBP / USD currency pair moves with more characteristic for holidays. First, there is no high volatility. Secondly, there are no frequent turns and the so-called "wide flat". Thirdly, trading is calm without jerking. In the case of the European currency, there is no news. No messages from Theresa May regarding Brexit, no reports on the Brexit topic itself and no news from the British Parliament. Actually, this is not surprising since the parliament went on vacation, and Theresa May can only call on politicians to support her Brexit project. No information was received from the States either neither from Donald Trump, nor from the White House about the possible dismissal of Jerome Powell, about which rumors appeared a few days ago. Also, there is no important macroeconomic publications are planned for today. In this way, pound sterling reacts to holidays absolutely logical and logical. From a technical point of view, the pair continues a very moderate upward movement, as indicated by the purple bars of the Heiken Ashi indicator. However, it is absolutely clear to everyone that the future of the pound sterling depends only on the outcome of the Brexit vote in parliament, which will take place in mid-January.
Nearest support levels:
S1 - 1,2695
S2 - 1,2665
S3 - 1.2634
Nearest resistance levels:
R1 - 1.2726
R2 - 1.2756
Trading recommendations:
The GBP / USD pair broke the Murray's level "8/8".Thus, it is recommended to consider long positions with targets 1.2726 and 1.2756 but in small lots, as trading on holidays is associated with increased risks.
Shorts will become relevant no earlier than fixing the price below the moving average line with targets 1.2604 and 1.2573. However, over the next week, the overcoming of MA will not necessarily mean a change in trend.
In addition to the technical picture, you should also consider the fundamental data and the time of their release.
Explanations for illustrations:
The higher linear regression channel is the blue lines of unidirectional movement.
The lower linear channel is the purple lines of unidirectional movement.
CCI is a 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.
Heiken Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com