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: 52.1042
The currency pair GBP / USD on Wednesday, January 9, is trying to resume an upward movement, not having worked out the moving within the correction. So far, the upward trend in the instrument is maintained. Donald Trump's nightly performance did not have a strong impact on the markets. Trump reported that the Democratic Party refuses to accept his proposal for the construction of a wall on the border with Mexico. From his point of view, the wall is extremely necessary, since it is difficult for the American border guards to fight the invasion of migrants, the country itself can no longer cope with the task of providing them and deportation. The US leader also announced that he had invited the leaders of Congress to the White House to discuss the resumption of the work of the government. In his opinion, the work of the government can be resumed in 45 minutes. Emergency mode Trump is not going to enter, although, again, according to him, it would solve the issue of financing the construction of the wall on the border with Mexico. Traders do not consider the current situation in America as critical or negatively affecting the country's economy. "Shutdown" happened before. However, it should still be recognized that in the current environment, it will be difficult for the US currency to show growth. Mark Carney will be performing in the UK today, which could potentially be very interesting and important.
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 has completed the correction. Therefore, at the moment, it is again recommended to consider purchase orders with targets 1.2756 and 1.2817. Above the moving average line remains the possibility of strengthening the pound sterling.
It is recommended to open the short positions no earlier than fixing the price below the moving average line with the first target of 1.2634. In this case, the bears will seize the initiative for a while.
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