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: 62.3314
The currency pair GBP / USD on Thursday, January 17, continues to be near its local maximums. No reaction to Theresa May's defeat in Parliament and the failure of her Brexit plan came from traders. Which is very surprising. Late yesterday evening, a new vote was held in the British Parliament, this time about the vote of no confidence in Theresa May, which was initiated by opposition leader Jeremy Corbyn. However, even here the markets were in for a surprise. With a minimum margin, the vote ended with the victory of the current prime minister. What do we have in the end? The Checkers plan failed. Theresa May has remained at the helm, there will be no new parliamentary elections yet, there is no new Brexit plan, Brexit itself should take place no later than March 29, the European Union is unlikely to make new concessions to London and in general will hold new negotiations. There is almost a stalemate. In the coming days, Theresa May and her government will need to submit a so-called plan "B" for consideration, but does she have it? In the current conditions, the more likely outcomes of events are options with the country's abandonment of Brexit or withdrawal from the EU without any agreements. The first option, at least, strange after a two-year epic, the second, completely unfavorable for London. In general, it seems that the epic with the exit from the European Union continues.
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 a very weak upward movement. Thus, now remain relevant long positions with a target of 1.2939. Instrument volatility has greatly decreased, but this is unlikely to be for a long time, bursts of activity are possible.
Short positions will become relevant no earlier than reversing the price below the moving average line. The goal, in this case, will be the level of 1.2695, which has already been tested. From a fundamental point of view, the fall of the pound now looks more preferable.
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