4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - up.
CCI: 76.9031
The currency pair GBP / USD on Thursday, February 21, almost completely repeated the movements of the EUR / USD currency pair. The response to the Fed protocol was similar. However, it follows from this that there was no reaction at all to the meeting of Jean-Claude Juncker and Theresa May in Brussels. After the talks, May and Juncker made a statement during which the British Prime Minister announced progress in the negotiations. The progress that May had in mind is that the parties have agreed to work on the controversial points "at a pace" since there is not much time left. Very strange progress, given the fact that there is less than a month and a half before Brexit. No other information was voiced, that is, it can be assumed that there is no progress in the negotiations on the most fundamental issue of the Northern Irish border. No important macroeconomic publications are scheduled for Great Britain on Thursday, and in the States today there will be a report on durable goods orders and preliminary values of business indexes in various areas of Markit. We believe that the pound sterling has already exhausted its growth potential with more than one and is ready for a new downtrend.
Nearest support levels:
S1 - 1.3031
S2 - 1.3000
S3 - 1.2970
Nearest resistance levels:
R1 - 1.3062
R2 - 1.3092
R3 - 1.3123
Trading recommendations:
The pair GBP / USD has begun a round of downward correction. Thus, it is now recommended to wait for the completion of this correction (if it does not grow into a downward movement) and open new long positions with a target of 1.3123.
Short positions will again become relevant after the price is fixed back below the moving average line. The targets, in this case, will be the levels 1.2848 and 1.2817.
In addition to the technical picture should also take into account 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