4-hour timeframe
Technical details:
The upper linear regression channel: direction - up.
The lower linear regression channel: direction - sideways.
Moving average (20; smoothed) - down.
CCI: -62.0682
The GBP/USD currency pair adjusted to the moving average and failed to overcome it, therefore, it resumed its downward movement after the rebound. It would be rather strange if the pound sterling again began to grow, as there were no really important and positive messages from the UK. The UK manufacturing business index for March was published yesterday in the UK, and it was unexpectedly much higher than forecast (55.1 vs. 51.0). However, this index is unlikely to level the entire negative effect of Brexit. Meanwhile, the British Parliament held four more votes on possible options for the development of the event on Brexit. This time there was not even a loud announcement of this event. And quite rightly, as the Parliament did not try to surprise the public and rejected all four alternative options, including a new referendum, as well as the option of extending EU membership in the free economic zone, the option with the permanent Customs Union after Brexit and the option of another extension deadlines. The most interesting thing is that the Parliament has no choice but to continue to vote for all the options in a row, since it is necessary to choose and adopt at least one option. We can only watch all this chaos in the UK, which a few months ago it was even difficult to imagine. The pound, in our opinion, will continue to remain under pressure.
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 resumed its downward movement. Thus, short positions with targets at 1.3062 and 1.3000 before the color with Heikin Ashi indicator 1-2 bars in purple color are again relevant.
Long positions will become relevant only after overcoming the moving with the first goal of 1.3184. From a fundamental point of view, there are few grounds for such an option.
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.
Heikin Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com