GBP / USD Trading system "Regression Channels" on March 21. Fed meeting affected the pound and the Bank of England meeting

4 hour timeframe

Technical details:

Senior linear regression channel: direction - up.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - sideways.

CCI: -106.4178

The GBP / USD currency pair has fixed below the MA. Thus, a change in the downward trend has responded to the outcome of the Fed meeting rather indirectly. However, the rise in the pair was not enough to go above the MA, which was weak in general. Hence, the sterling pound is now in a position where the market does not know which way to go next. The new strengthening of the pound will be completely illogical in the context of the situation in Brexit. Yesterday, the Fed's meeting did not contribute to the decline in the pair amid the decline in GDP forecasts for the coming years and the statement which in fact about ending the key rate increase cycle. It should also be noted that today the meeting of the results of the meeting of the Bank of England will take place. However, no changes are expected in monetary policy but any interesting information can still do.

The key question for the next few days remains: what decision will the EU take at the request of Theresa May to postpone Brexit to June 30? Earlier, information has already been received that Brussels is against the transfer of a "divorce" precisely for this period, although on the whole it is ready to meet London. Moreover, on March 21, a report on retail sales in the UK for February will be published. However, Brexit will be postponed either to May 23 or to a much later date. although generally ready to meet London. However, Brexit will be postponed either to May 23 or to a much later date, although generally, they are ready to meet London.

Nearest support levels:

S1 - 1.3184

S2 - 1.3123

S3 - 1.3062

Nearest resistance levels:

R1 - 1.3245

R2 - 1.3306

R3 - 1.3367

Trading recommendations:

The GBP/USD pair has begun a round of correction but it was already against a downward correction. Thus, you should wait for the Heiken-Ashi indicator to turn down in order to open short positions with targets of 1.3184 and 1.3123.

Purchase orders will again become relevant not earlier than breaking of the MA and the level of 1.3245. In this case, the bulls will again seize the initiative on the market and the first target levels in trading longs will be the levels of 1.3306 and 1.3367.

It should be noted.

Explanations for illustrations:

The senior linear regression channel is the blue lines of unidirectional movement.

The junior linear channel is the purple lines of unidirectional movement.

CCI is a blue line in the indicator regression window.

The moving average (20; smoothed) is on 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