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: 139.0805
The currency pair GBP / USD on Tuesday, January 15, continues its upward movement. Thus, traders before the results of the parliamentary vote on the Brexit issue show an enviable optimism. Although previously we have repeatedly said that for the pound sterling now, absolutely any decision on Brexit (except for the next vote transfer) will be positive. The British currency and the UK itself need clarity now, both in the Brexit issue and in the political sphere. Therefore, today strong bursts of activity on the instrument are possible, however, in general, after a few days, the pound sterling should be calm down. The further fate of the pound will already depend on the new state policy. It also appeared that two bills on the second referendum could be sent to the UK Parliament at once. They are expected to be registered if Theresa May's Checkers plan is rejected today. Then the country will have to choose between two scenarios: either unordered Brexit or rejection of Brexit. And it is not known yet which option will the parliament ultimately choose and with which Prime Minister. According to Theresa May, the parliament is obliged to accept her plan, since the rejection of Brexit "will strengthen the position of opponents and lead to a split in the UK." Theresa May fears that Scotland, if Brexit fails, will demand independence, and Ireland and Northern Ireland will want to unite.
Nearest support levels:
S1 - 1.2817
S2 - 1.2695
S3 - 1.2573
Nearest resistance levels:
R1 - 1.2939
Trading recommendations:
The currency pair GBP / USD continues to move up. Thus, purchase orders with a target of 1.2939 are still relevant. Turning the Heikin Ashi indicator down will signal a manual reduction of long positions. Today it is recommended to conduct extremely cautious trading since it is difficult to say how the meeting of parliament will end.
Sell positions are recommended to be considered after the bears are fixed below the moving. In this case, you can expect the fall of the currency pair with the target of 1.2695.
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