4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - sideways.
CCI: -14.5085
The currency pair GBP / USD on Tuesday, January 22, was fixed for a short time below the MA, but has already managed to return to the area above this line. Yesterday, Theresa May presented her plan "B" for Brexit in the British Parliament. It was hard to even imagine what exactly the prime minister would offer. And Ms. May suggested new negotiations with Brussels on the Northern Ireland border. Thus, her plan for new negotiations with the EU must now be approved by parliamentarians, after which May will go to these same negotiations. How May intends to negotiate with European leaders, given the fact that they have repeatedly stated that London is provided with the best conditions for getting out of all possible, is unknown. One way or another, it looks like there will be new negotiations with the EU, but all this now seems like a banal clinging to a drowning man in a straw. The leader of the Labor Party's opposition party, Jeremy Corbyn, has already said that May simply refuses to recognize the real situation around her Brexit plan. Theresa May also managed to declare that she opposes the second referendum, as well as against the postponement of leaving the EU. Today, the UK will publish reports on wages for November, unemployment rate and applications for unemployment benefits for December.
Nearest support levels:
S1 - 1.2848
S2 - 1.2817
S3 - 1.2787
Nearest resistance levels:
R1 - 1.2878
R2 - 1.2909
R3 - 1.2939
Trading recommendations:
The currency pair GBP / USD continues to be in the correction. Thus, it will be possible to open long positions in the case of the color of 1-2 bars with the Heikin Ashi indicator in purple with targets of 1.2939 and 1.3000.
Sell positions will become relevant no earlier than price fixing below the moving average line. The initiative, in this case, will pass into the hands of bears, and the first target for the downward movement will be the level of 1.2817.
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