4 hour timeframe
Technical details:
Senior linear regression channel: direction - up.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: 7.6983
The weakest upward correction continues on the GBP / USD pair. The UK continues to fever. It was only recently reported that in the case of "tough" Brexit, Scotland will try to leave the UK. Now it became known that almost 100 members of the Labor Party of Great Britain intend to initiate a second referendum so that the citizens themselves determine which exit option from the EU (and whether Brexit is needed at all) suits them. In principle, such a scenario can be a way out of the current situation, when the Parliament, Theresa May and the European Union cannot reach a general agreement. However, the problem lies in the fact that the results of the repeated referendum may be unexpected. For example, a majority will vote to opt out of Brexit. Then it turns out that all the events of the last three years, Great British monetary losses, and the mass resignations in parliament will not make any sense. Moreover, Brexit is the brainchild of Theresa May, and she will resist to the last, just not to cancel it and bring it to the end. For sterling, this only means new potential problems. This process is unlikely to go smoothly, quietly and calmly. But the final failure of Brexit may, on the contrary, support the pound. However, all this is only at the stage of talking. The downward trend in pound sterling continues.
Nearest support levels:
S1 - 1,2878
S2 - 1,2817
S3 - 1.2756
Nearest resistance levels:
R1 - 1.2939
R2 - 1.3000
R3 - 1.3062
Trading recommendations:
The pair GBP / USD continues to be adjusted. Thus, after the completion of the correction, it is recommended to trade for a fall with targets 1.2878 and 1.2817, since the downtrend persists.
Longs are recommended to be considered after fixing the pair above the moving average line with targets at 1.3000 and 1.3062. The pair can execute this option, but the pound still has no fundamental support, which means that the pair will not go far upwards.
In addition to the technical picture, the fundamental data and the time of their release should also be taken into account.
Explanations for illustrations:
The senior linear regression channel refers to the blue lines of unidirectional movement.
The junior linear channel refers to the purple lines of unidirectional movement.
CCI refers to 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.
Heiken indicator is an indicator that refers to the colored bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com