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: 184.2168
The currency pair GBP / USD on the last trading day of the week continues to grow steadily against the US currency. Despite the fact that Theresa May miraculously kept herself in the prime minister's chair, and her Brexit plan failed miserably, traders continue to buy pounds sterling. One gets the impression that such an illogical reaction may be associated with the acceleration of the pair before a new prolonged fall. Now, when the probability of leaving the EU without any "deals" is extremely high, this is clearly not a reason for buying the British pound. Thus, it is possible that the market purposefully moves the pound upwards in order to sell it at a higher price. As for Theresa May's further actions, in the near future, she should discuss with all faction leaders and deputies an alternative exit plan from the EU, which in any case provides for new negotiations with Brussels. But will Brussels go to new negotiations? Further, time is running out as the date of the country's withdrawal from the EU is March 29. Thus, the likelihood that in such a short period of time, the parties will be able to come to a new agreement, which will suit the British Parliament, is extremely low. On Friday, January 18, the UK is scheduled to publish a report on retail sales, but now the British pound is not particularly needed support. At the end of the trading week, it is still possible to roll back from local maxima.
Nearest support levels:
S1 - 1.2939
S2 - 1.2878
S3 - 1.2817
Nearest resistance levels:
R1 - 1.3000
R2 - 1.3062
R3 - 1.3123
Trading recommendations:
The currency pair GBP / USD continues its upward movement. Thus, now remain relevant long positions with targets at 1.3000 and 1.3062. Manual closing of trades is possible when Heikin Ashi indicator is down.
Sell positions will become relevant no earlier than price fixing below the moving average line. The first goal, in this case, will be the level of 1.1827.
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