4-hour timeframe
Technical details:
The upper linear regression channel: direction - up.
The lower linear regression channel: direction - down.
The moving average (20; smoothed) - sideways.
CCI: 47.7373
The currency pair GBP/USD tightly stuck between the levels of 1.3123 and 1.3062. Volatility is lowered, the markets clearly do not know which way to go next. Fortunately, today in the UK, reports of applications for unemployment benefits, unemployment rates and changes in average wages will be published. These reports are quite important, so they can quite strongly affect the movement of the currency pair today. Thus, today there is a hope that the pair will manage to escape from the frank flat. There are no important messages on the Brexit topic right now. The only thing that can be noted is the mood of the Theresa May government on the "hard" version of Brexit. That is, Theresa May admits the high probability of just such an option of leaving the EU and is preparing for it. In principle, this is quite logical, given the fact that the Parliament rejected the agreement proposed by the Prime Minister three times. From a technical point of view, now everything is simple – frank flat. Thus, the best option is to wait until it is completed, since it is quite difficult to trade within a narrow price range, and the potential profit on any transactions is small. What can bring the pound out of the flat? Today's news from the UK (although the chances of this are not much) or the most important new information on Brexit (which is not expected in the near future). Thus, it is quite possible that the flat will persist for a long time.Nearest support levels:
S1 - 1.3062
S2 - 1.3031
S3 - 1.3000
Nearest resistance levels:
R1 - 1.3092
R2 - 1.3123
R3 - 1.3153
Trading recommendations:
The GBP/USD pair is located right next to the MA, and now the market is still calm. Thus, formally now are relevant long positions with targets at 1.3123 and 1.3153, but it is recommended to retrace these goals very carefully and cautiously or not at all.
Sell positions will formally become relevant after the pair is fixed below the moving average line with targets at 1.3031 and 1.3000, however, in this case, it is recommended to trade very carefully or to remain out of the market until the end of the flat.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The upper linear regression channel is the blue lines of the unidirectional movement.
The lower 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.
Heiken Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com