4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - up.
CCI: 122.8852
The currency pair GBP / USD on Monday, January 28, as if nothing had happened, continues a confident upward movement. The pair now mostly ignores any news and lack thereof, but simply grows. Thus, as we have written more than once, it is best to continue to follow the current steady trend now, not paying attention to the fact that such a strengthening of the pound is not too logical and incomprehensible what is caused. We still believe that this strengthening may be followed by a strong drop in the pound sterling since there has never been any clarity on the Brexit issue. Yes, it became clear to all that neither the European Union nor the United Kingdom is ready to accept the "tough" Brexit. And until the last, they will try to reach an agreement in such a way that this will suit both the EU leaders, and Theresa May, under whom the chair has been swinging for several months, and the British Parliament. But this does not mean that the parties will be able to agree. In the meantime, first there was a postponement of the vote in parliament, now we are waiting for the postponement of the country's withdrawal from the EU and new negotiations with the leaders of the bloc. In general, the process is delayed, tomorrow there will be a new vote on the enchanting plan "B" of Theresa May, which is not really different from the plan "A". Most likely, this bill will also be rejected, and from the premier, the markets will wait for a new portion of calls and threats regarding the fact that the best for the UK will be the Checkers plan.
Nearest support levels:
S1 - 1.3184
S2 - 1.3123
S3 - 1.3062
Nearest resistance levels:
R1 - 1.3245
R2 - 1.3306
Trading recommendations:
The currency pair GBP / USD continues to move up. Therefore, purchase orders with targets at 1.3245 and 1.3306 are now relevant. Turning the Heikin Ashi indicator down will signal a manual reduction of long positions.
Short positions can be considered in the case of bears attached below the moving average line. The trend in the instrument will change to downward, and the first goal for the downward movement will be the level of 1.2939.
In addition to the technical picture should also take into account 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