4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: -23.5206
The currency pair GBP / USD on Friday, January 4, also continued the upward movement and completed the Murray level of "+1/8" - 1.2756. After a strong and rather unjustified fall of the pair on January 2, the British pound has almost fully recovered. One unanswered question remains: Friday's recovery despite the nature of macroeconomic events was a short-lived phenomenon? Still, most of the news and reports from the States were on the side of the American currency. Instead of strengthening the dollar, we saw a recoilless growth of the pound sterling. Since the losses after the collapse of January 2 have already been restored, then today the pound may begin to fall in price, fulfilling Friday's news. At the same time, there is every reason to assume the completion of the entire downtrend formation by the breakdown of the level of 1.2450. At least such a hypothesis will live until the moment of voting in the British Parliament regarding the Brexit question. The specific date of the vote, January 14-15, became known. Of course, if there is no next transfer. But in any case, these dates now look just so important to the pound. In any case, even if Parliament doesn't adopt Theresa May's bill and the country takes the path of "tough" Brexit, it will be at least some clarity for the pound and traders.
Nearest support levels:
S1 - 1.2695
S2 - 1.2634
S3 - 1.2573
Nearest resistance levels:
R1 - 1.2756
R2 - 1.2817
Trading recommendations:
The currency pair GBP / USD continues to move up. Now, therefore, the relevant long positions with targets of 1.2756 and 1.2817. The color indicator Heikin Ashi 1-2 bars in blue color will signal the manual closure of longs.
It is recommended to consider selling positions not earlier than reversing the price below the moving average with the first target at 1.2573. However, it should be borne in mind that there are not many sellers at these levels now, since they are already minimal in a year and a half.
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