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: 88.3026
The currency pair GBP / USD on Thursday, January 10, resumed its upward movement, but the strengthening of the British pound is minimal against the US dollar, unlike the euro currency. Why did the euro rise significantly, but the pound do not? From our point of view, Brexit is the culprit and the lack of any clarity on the results of this procedure. Markets expect that everything will finally become clear and understandable on January 15. However, as it was not once, everything can change, the vote can be rescheduled again. It should be understood that for Theresa May, January 15 is no less important than for All Britain. On this day, one might say, its further political fate will be decided. If parliament refuses to vote for its Checkers plan, and everything goes exactly to this, then it will probably have to resign. Accordingly, the current prime minister has to make serious efforts and use any opportunities to collect the necessary number of votes in parliament. And therefore, if necessary, the voting will be postponed as many times as necessary until March 29. In such circumstances, it is very difficult for the pound sterling to go up, even if there are fundamental grounds that come from the States now. Jerome Powell will speak in the United States today, which may exacerbate the negative reaction of traders to the pigeon attitude of Fed members recently.
Nearest support levels:
S1 - 1.2756
S2 - 1.2695
S3 - 1.2634
Nearest resistance levels:
R1 - 1.2817
Trading recommendations:
The currency pair GBP / USD continues its upward movement, as evidenced by Heikin Ashi. Therefore, long positions are now relevant with the goal of 1.2817, which is very close and is the last in the current layout of Murray levels.
Sell positions should be considered after the price is fixed below moving. In this case, the initiative on the instrument will go into the hands of bears, and the first target for short positions will be the Murray level of "7/8" - 1.2634.
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