4-hour timeframe
Technical details:
The upper linear regression channel: direction - up.
The lower linear regression channel: direction - down.
The moving average (20; smoothed) - down.
CCI: -77.6078
Yesterday, the weakest upward correction began on GBP/USD, which, in principle, was brewing at the end of the week. We believe that today the pound has every chance to adjust, but the reasons for this are more technical than fundamental. At the end of the week, traders can begin to take profits on short positions, and the pair failed to overcome the level of Murray "1/8" - 1.2878. Thus, we have just two factors to strengthen the British pound on Friday, April 26. Among the fundamental events, we can highlight the reports on GDP and expenditures on personal consumption in the USA (preliminary values for the first quarter). Also, note that the UK in 2019 may not only withdraw from the EU but also lose Scotland. Talk that Scotland wants to get out of the jurisdiction of London, began immediately after the referendum on Brexit. Now the Scottish Premier Nicola Sturgeon has returned to this idea and is preparing a bill that determines the order of the referendum in order to avoid additional losses from Brexit. Recall that in the 2016 referendum, most of the Scots were opposed to leaving the EU. Thus, in the future, the UK may face no less serious problems than Brexit.
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 began to be adjusted. Thus, it is recommended to trade short positions with targets at 1.2878 and 1.2817, but after the completion of the current round of correction, the indicator Heiken Ashi will signal.
Long positions are recommended to be considered after fixing the pair above the moving average line with targets at 1.3000 and 1.3062. In the current environment, this option is still unlikely.
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