4 hour timeframe
Technical details:
Senior linear regression channel: direction - up.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - down.
CCI: -101.5514
The GBP/USD currency pair began to adjust after a breakthrough. The trend of the instrument has changed to downward, but in general, everything looks as if the uptrend remains in force so far. At the same time, it is even difficult to imagine what could force traders to switch back to buying British currency, given the complete chaos in the Brexit procedure. Meanwhile, in Brussels yesterday, the European Union agreed to grant a reprieve to London but only until May 22 as previously reported, only on the condition that the British Parliament will accept the previously agreed deal. The theatrical of the absurdity continues. Now, Theresa May will have to return to London and declare to the Parliament that they have no choice again. More precisely, there is a choice either the "tough" Brexit following the EU condition which will commence on April 12 or the parliament accepts its version of the agreement with Brussels. In general, Theresa May's strategy has not changed in any way and in the near future, we can expect a new vote in parliament for the third in a row for the same agreement, an unprecedented case. Thus, we are entering a new and the next finish line of the entire Brexit. If it is postponed again after May 22nd, it will be just ridiculous. If the British Parliament does not approve the agreement with the EU for the third time, then it will only be necessary to cancel Brexit according to the same article 50 of the Lisbon Treaty or to leave the EU disorderly.
Nearest support levels:
S1 - 1.3123
S2 - 1.3062
S3 - 1.3000
Nearest resistance levels:
R1 - 1.3184
R2 - 1.3245
R3 - 1.3306
Trading recommendations:
The GBP/USD pair has begun a round of upward correction but already against a downward correction. Thus, you should wait for the Heiken-Ashi indicator to turn down to open new shorts with targets at 1.3062 and 1.3000.
Long positions will again become relevant not earlier than moving the MA. In this case, the bulls will again seize the initiative on the market and the first targets for the longs will be the levels of 1.3245 and 1.3306.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
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