4-hour timeframe
Technical details:
Senior linear regression channel: direction - down.
Junior linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: 244.1699
Yesterday, the GBP/USD currency pair made a breakthrough up, based on rumors that Donald Trump could dismiss Fed Chairman Jerome Powell, although it will be very difficult from a legislative point of view. Meanwhile, Theresa May has decided to shorten the Christmas holidays for the entire Parliament. Instead of the planned release date of politicians from the holidays on January 9, the second day will be an emergency meeting in Parliament on the issue of Brexit. May herself noted that a split in society was taking place in the country, and called for the approval of her draft for the country's withdrawal from the EU. We have heard these calls many times, but it is still very unlikely that the British Parliament will pass the bill. As in the case of the euro, there are too many uncertainties for the GBP/USD pair now, which prevent us from making long-term and medium-term forecasts. First, it is unclear what the outcome of the Brexit. After all, there are options with the second referendum, and with the resignation of Theresa May, and with the "hard" option of "divorce". Secondly, macroeconomic statistics and indicators will also depend on the Brexit option, which will eventually be approved by all. It is already clear that there are very few buyers for the pound. This means that the British currency can start a new fall at any time.
The next support levels:
S1-1,2695
S2-1,2634
S3-1,2573
Nearest resistance levels:
R1-1,2756
R2 – 1.2817
Trading recommendations:
The GBP/USD pair overcame the level of Murray "8/8". Thus, it is recommended to consider long positions with targets of 1.2756 and 1.2817, but small lots, as the fundamental basis for the growth of the pound sterling a little.
Sell-positions can be considered not earlier than fixing the price below the moving average line. But in this case it is recommended to trade small lots with the target of 1.2573. Still, the holiday week.
In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.
Explanation of illustrations:
Senior linear regression channel – blue line unidirectional movement.
Low channel of the linear – purple line unidirectional movement.
CCI-blue line in the regression window of the indicator.
Moving average (20;smoothed) - blue line on the price chart.
Support and resistance – red horizontal lines.
Heiken-Ashi indicator, coloring bars blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com