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: 57.3373
Once again, the GBP / USD currency pair failed to consolidate for a long time below the MA and develop a downward movement. However, it is also failing to continue the upward movement due to the frank flat formed on the instrument in recent days. So far, the pair have also failed to overcome the resistance zone of 1.2695 - 1.2726, from which it bounced off 4 times already. In general, the British currency behaves on holidays absolutely logical, flat with a decrease in volatility and activity. Thus, market participants need only to wait until the holidays are over. After the New Year for the British pound, X will again come again, since in the first half of January the work of the Brexit parliament will resume, and a vote for / against Theresa May's bill according to the Checkers plan will take place. Macroeconomic reports will also slowly begin to be published in the States and the UK, which will also influence the movement of the pair. On the last trading day of the outgoing year, we can only recommend not to risk in vain, as not only is the activity on the pair very low now, the market is also very "sensitive", which can result in unexpected and unpredictable movements. Resume trade better in 2019.
Nearest support levels:
S1 - 1.2665
S2 - 1.2634
S3 - 1.2604
Nearest resistance levels:
R1 - 1.2695
R2 - 1.2726
R3 - 1.2756
Trading recommendations:
The currency pair GBP / USD has fixed back above the MA, therefore, at the moment, long minimal lots with targets at 1.2726 and 1.2756 are relevant. Opening any positions is now associated with increased risks, so before the end of the holidays, you cannot enter the market.
Sell positions can be considered no earlier than reversing the price below the moving average. In this case, the short positions will become relevant as small lots with targets of 1.2604 and 1.2573. In general, the pair remains frank flat.
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