4-hour timeframe
Technical data:
The upper linear regression channel: direction – down.
The lower linear regression channel: direction – down.
The moving average (20; smoothed) – down.
CCI: -97.0078
Watching Theresa May's performances in recent months, as well as her actions, one gets the impression that the Prime Minister is deceiving herself. Yesterday's information that May is ready to make concessions in the form of allowing Parliament to vote for the second referendum looks absurd, given its condition that the Parliament will accept its "deal" with the EU. Why then do we need a second referendum if the Parliament accepts a completely unchanged agreement with the EU on the fourth attempt? Thus, Theresa May is making a "veiled", from her point of view, an attempt to win over more votes for her project, using a tool that supports a sufficient number of parliamentarians. Only the second referendum is needed to the deputies, most likely, in order to cancel Brexit. According to most British analysts, the fourth attempt to adopt an agreement on Brexit will also fail, because it is already clear that there are no changes in the document, and Theresa May is simply trying to push the "deal" through Parliament. Yesterday's correction of the pound/dollar to the moving average looks like an accident. The GBP/USD pair is still prone to fall, and the last bars of the Heiken Ashi indicator is colored in blue. The market still leaves the pound sterling as an outsider, and there are no bulls on the pound now.
Nearest support levels:
S1 – 1.2695
S2 – 1.2634
S3 – 1.2573
Nearest resistance levels:
R1 – 1.2756
R2 – 1.2817
R3 – 1.2878
Trading recommendations:
The pair GBP/USD continues its downward movement. Thus, short positions with targets at 1.2695 and 1.2634 are now relevant, before Heiken Ashi's indicator turns up, which will indicate a new round of upward correction.
It is recommended to consider long positions after the consolidation of the pair above the moving average with the targets at 1.2878 and 1.2939. However, at the moment, there are almost no bulls on the market.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of illustrations:
The upper linear regression channel – the blue line of the unidirectional movement.
The lower linear regression channel – the purple line of the unidirectional movement.
CCI – 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