4-hour timeframe
Technical details:
Higher linear regression channel: direction - up.
Lower linear regression channel: direction - down.
Moving average (20; smoothed) - sideways
CCI: 11.7565
The GBP/USD currency pair continues to be thrown from side to side, as traders find it difficult to understand what awaits the UK in the future, what will be the result of the three-year Brexit procedure. According to the latest opinion polls, it becomes clear that most of the UK population is already tired of the Brexit topic. If some time ago, the words "unclear" and "uncertain" prevailed in the moods of the population, now most of the respondents describe the current situation as "chaos". Moreover, the majority of respondents believe that discussions on the country's withdrawal from the EU already have a negative impact on their mental health. Meanwhile, the UK is preparing for mass riots, which are possible against the backdrop of all that is happening in the country's politics. The European Union continues to offer options for a prolonged postponement of Brexit, but London is not satisfied with this option. Like many other options on the "divorce" with the European Union, which was rejected by the Parliament. We still believe that the pound sterling is prone to fall, just as long as some invisible forces keep it from conquering new lows. But these forces will not be able to restrain the pound forever. It seems that at one point, the pair will simply collapse and update the lows on January 3.
Nearest support levels:
S1 - 1.3062
S2 - 1.3000
S3 - 1.2939
Nearest resistance levels:
R1 - 1.3123
R2 - 1.3184
R3 - 1.3245
Trading recommendations:
The pair GBP/USD once again changed the direction of movement and fixed below the MA. At the same time, it was not possible to overcome the level of 1.3062, and now the pair can at least begin a correction, and, as a maximum once again gain a foothold above the moving average. Not a good time to bid.
Buy-positions can be considered after fixing the pair above the moving average, but only with a "short" target – 1.3184.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The higher 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
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