Forecast for AUD/USD on August 28, 2024

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The Australian dollar has been consolidating below the 0.6801 level for the third day, which coincides with the peaks of July and August. The Australian dollar still has three days to update the peak of the current month, but given that it is a strong level, and the next target at 0.6874 is quite high, and external markets are not in a hurry to surpass their record highs, the struggle with this resistance even for speculative interests seems unlikely.

The Marlin Oscillator feels this pressure and turns downward. To relieve the tension, it would be convenient for the price to drop to the support at 0.6727 and reassess its strength there. Support from the MACD line may also come into play.

In the 4-hour chart, the MACD line has already approached the price. If the price consolidates below it, under the 0.6773 mark, it will be a sign that the price is set to test 0.6727. On the contrary, if the price consolidates above 0.6801, it will be an uncertain sign of further growth.

The material has been provided by InstaForex Company - www.instaforex.com #

How to Trade the EUR/USD Pair on August 28? Simple Tips and Trade Analysis for Beginners

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Analyzing Tuesday's Trades:

EUR/USD on 1H Chart

The EUR/USD pair stood in the same place all day on Tuesday. The macroeconomic backdrop was relatively weak, and there were no fundamental developments. Among the macroeconomic data, we can only highlight the German consumer confidence index, which plunged to -22 points, and the GDP report for the second quarter, which predictably came in at -0.1% quarter-on-quarter. Thus, these data could not support the euro, nor did they exert any pressure on it. Once again, weak reports for the euro did not provoke any reaction from the market.

Regarding fundamental events, several Federal Reserve representatives spoke, each indicating that the key interest rate might be lowered in September. They completely reiterated Fed Chair Jerome Powell's rhetoric. Oddly, the dollar did not fall even further in response to these statements.

EUR/USD on 5M Chart

In the 5-minute time frame, trading on Tuesday was marked by low volatility and was exclusively sideways. As a result, no trading signals were generated throughout the day.

How to Trade on Wednesday:

EUR/USD continues to form an upward trend supported by a trend line in the hourly time frame. We believe the euro has already factored in all the bullish factors, so we do not expect further upward movement. However, the market again shows it is ready to react to almost any event by panic selling the dollar. And even if there are no events, it is still prepared to sell the dollar. We can expect a drop in the pair after a breakout below the trend line.

On Wednesday, novice traders might anticipate a decline since the price cannot rise forever. However, it is important to understand that there is a strong uptrend. If the price remains below 1.1184, a slight decline towards 1.1132 can be expected.

The key levels to consider on the 5M time frame are 1.0726-1.0733, 1.0797-1.0804, 1.0838-1.0856, 1.0888-1.0896, 1.0940, 1.0971, 1.1011, 1.1048, 1.1091, 1.1132, 1.1184, 1.1275-1.1292. On Wednesday, no significant or even secondary events are scheduled in the European Union or the United States. Therefore, a flat or slight decline in the European currency may continue.

Basic Rules of the Trading System:

1) The strength of a signal is determined by the time it takes for the signal to form (bounce or level breakthrough). The less time it took, the stronger the signal.

2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be ignored.

3) In a flat market, any currency pair can form multiple false signals or none at all. In any case, it's better to stop trading at the first signs of a flat market.

4) Trades should be opened between the start of the European session and midway through the U.S. session. After this period, all trades must be closed manually.

5) In the hourly time frame, trades based on MACD signals are only advisable amidst substantial volatility and an established trend confirmed by a trendline or trend channel.

6) If two levels are too close to each other (5 to 20 pips), they should be considered support or resistance.

7) After moving 15 pips in the intended direction, the Stop Loss should be set to break even.

What's on the Charts:

Support and Resistance price levels: targets for opening long or short positions. You can place Take Profit levels near them.

Red lines: channels or trend lines that depict the current trend and indicate the preferred trading direction.

The MACD (14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a source of signals.

Important speeches and reports (always noted in the news calendar) can profoundly influence the movement of a currency pair. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.

Beginners should always remember that not every trade will yield profit. Developing a clear strategy and effective money management is key to success in trading over a long period.

The material has been provided by InstaForex Company - www.instaforex.com #

Review of GBP/USD on August 27; No one cares about the US dollar. Until...

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On Monday, the GBP/USD pair didn't even attempt to correct in the first half of the day. Only during the American session, when the US report on durable goods orders was published, did some market movements start. However, it's hard to say that the dollar strengthened. The situation is such that we can draw the same conclusions as we did for the EUR/USD pair. The British pound is rising for only one reason – the market is waiting for the first rate cut by the Federal Reserve. Once it happens, the market may start expecting the second rate cut. Formally, the dollar could fall for another couple of months.

Nevertheless, given the complete illogicality of what is happening in the market, we cannot advise anyone to buy the pound or the euro. Even if we assume that everything is logical and the market is just "pricing in" the beginning of the Fed's monetary easing, how can we determine when the dollar selling will end? As we've mentioned, the dollar began to fall two years ago, two months after the first slowdown in inflation. Therefore, in our case, it might start rising in two months. Or maybe tomorrow. Everything will depend on how much the major players have already priced in the Fed's monetary easing, which has yet to begin.

And in November, the US presidential election will take place. A month and a half ago, it was easy to predict who would win, but now it's not. Kamala Harris's ratings are not any lower than Donald Trump's. By the way, Trump has already started using his favorite weapon of psychological pressure called "insults." However, voters can't be fooled twice in a row. Eight years ago, they chose Trump; four years ago, they were ready to choose anyone but Trump. Everyone knew that Joe Biden was 80 years old four years ago. Everyone knew he wasn't the American voter's dream. But Americans were fed up with Trump's daily lies and constant insults. Of course, Trump still has massive support in the US, but does he have more than 50%?

We should also remember that, in essence, all US elections come down to elections in a few key and swing states. Trump does not have 100% support in these states. Therefore, Harris could very well become the next US president. What will be the expectations of major players then?

Let's also note the macroeconomic backdrop, which has no impact on the dollar's movement. When US data are weaker than forecasts, the dollar falls. When they are stronger, practically nothing happens. Yesterday, a report on durable goods orders was published, and the actual value was twice the forecasts. How much did the dollar rise? In principle, by answering this question, you can understand how logical the movements in the currency market are now.

The average volatility of the GBP/USD pair over the past five trading days is 86 pips. For the GBP/USD pair, this value is considered "average." On Tuesday, August 27, we expect movement within the range bounded by levels 1.3106 and 1.3278. The upper channel of the linear regression is directed upwards, signaling the continuation of the upward trend. The CCI indicator may soon enter the overbought zone again and has already formed a triple bearish divergence.

Nearest Support Levels:

• S1 – 1.3184
• S2 – 1.3123
• S3 – 1.3062

Nearest Resistance Levels:

• R1 – 1.3245
• R2 – 1.3306

Trading Recommendations:

The GBP/USD pair continues its illogical rise but retains a good chance of resuming a downward momentum. We are not considering long positions at this time, as we believe that the market has already factored in all the bullish factors for the British currency (which are not much) several times. The market continues to buy without any apparent reason. Short positions could be considered at least after the price settles below the moving average, with targets at 1.2939 and 1.2878. The current movement of the pair has nothing to do with the concepts of "logic" and "regularity."

Explanations for Illustrations:

Regression Channels: help determine the current trend. If both are directed in the same direction, it means the trend is strong at the moment.

Moving Average Line (settings 20,0, smoothed): defines the short-term trend and the direction in which trading should be conducted.

Murray Levels: target levels for movements and corrections.

Volatility Levels (red lines): the probable price channel in which the pair will spend the next 24 hours, based on current volatility indicators.

CCI Indicator: Entering the oversold area (below -250) or the overbought area (above +250) means a trend reversal in the opposite direction is approaching.

The material has been provided by InstaForex Company - www.instaforex.com #

Technical Analysis of Daily Price Movement of USD/IDR Exotic Currency Pairs, Tuesday August 27, 2024.

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With the formation of a channel that dives down and the movement of the USD/IDR price that forms a deviation between its price movement and the RSI indicator (5) and fails to breaks and close below the level of 15348.72, it gives an indication that in the near future the USD/IDR will experience a strengthening correction where as long as there is no further weakening that breaks below the level of 15289, the USD/IDR has the potential to test the level of 15534 if it is successfully broken above it, the USD/IDR will continue to strengthen to the level of 15645 and if the momentum and volatility support it, the level of 15894 is the main target and 16042.32 will be the next target to be aimed for.

(Disclaimer)

The material has been provided by InstaForex Company - www.instaforex.com #

Review of EUR/USD on August 27; The Market is in Disarray

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On Monday, the EUR/USD pair seemed unsure of its next move. The euro has been rising almost continuously since June 27 and non-stop since August 2. During this time, the market has been reacting in one direction only. At the beginning of the month, new weak (relative to forecasts) data on the US labor market and unemployment were published, which explains why the market sells the dollar on such days. But how do we explain the three-week decline of the dollar? Yes, the likelihood of a Federal Reserve rate cut in September is already reaching 100%, but hasn't the market already been pricing in such a rate cut since the beginning of the year and even since 2022, when inflation began to slow down in the US? Look closely at the daily and weekly time frames – the dollar started falling a month or two after inflation began to slow down in America.

Thus, we still cannot call the current movement a logical one. We expected it to stop in the first half of the year, but as we can see, the market continues to work out the future easing of the Fed's monetary policy in advance. The only question is, how many rate cuts has the market already factored in? Considering the dollar's decline over the past two years, it seems the market has priced in about eight or nine rate cuts.

Under the current circumstances, we can make the following assumptions. At a certain point, the dollar's decline due to expectations was logical. We have repeatedly stated that the market always tries to factor in important future events in advance. However, there is also the opposite side of the coin. When the event actually happens, there is a counter-reaction because it has already been priced in. Therefore, we expect the US currency to strengthen in any case. And, as before, it is expected to be strong. Moreover, this could start happening soon. Remember when the dollar began to fall? It was a couple of months after the first signs of slowing inflation. If the Fed begins lowering rates in September, the dollar may start to catch up quickly.

It is clear to everyone that you cannot price in monetary easing in the US while ignoring easing in the Eurozone. The European Central Bank has already begun lowering rates and may cut them again in September. Thus, the euro itself has no grounds to rise so confidently. If we are wrong and the dollar continues to rise for another 3-6-9 months, we must admit that the fundamental background does not matter. What is the point of studying monetary policy if the market trades as it pleases?

The CCI indicator does not want to enter overbought territory, although we haven't seen even a small correction since the last two instances. In general, the situation is illogical now. We cannot predict further growth of the euro, but it could very well continue since the market does nothing but sell the dollar.

The average volatility of EUR/USD over the past five trading days as of August 27 is 70 pips, which is considered average. We expect the pair to move between the levels of 1.1098 and 1.1238 on Tuesday. The upper channel of the linear regression is directed upwards, but the global downward trend persists. The CCI indicator entered the overbought area three times, warning not only of a possible trend reversal to the downside but also of how the current rise is illogical.

Nearest Support Levels:

• S1 – 1.1169
• S2 – 1.1108
• S3 – 1.1047

Nearest Resistance Levels:

• R1 – 1.1230
• R2 – 1.1292
• R3 – 1.1353

Trading Recommendations:

The EUR/USD pair continues its strong and uninterrupted upward movement due to the market's relentless desire to buy euros and sell dollars continuously. In previous reviews, we mentioned that we only expect declines from the euro in the medium term, but the current rise now seems almost like a mockery. However, it would be foolish to deny that the price is in an upward movement, and there are no signs of its end yet. The market continues to seize every opportunity to buy, but the technical picture warns of a high probability of an upward trend ending. Short positions may be considered after the pair consolidates below the moving average, with targets at 1.1047 and 1.0986.

Explanations for Illustrations:

Regression Channels: help determine the current trend. If both are directed in the same direction, it means the trend is strong at the moment.

Moving Average Line (settings 20,0, smoothed): defines the short-term trend and the direction in which trading should be conducted.

Murray Levels: target levels for movements and corrections.

Volatility Levels (red lines): the probable price channel in which the pair will spend the next 24 hours, based on current volatility indicators.

CCI Indicator: Entering the oversold area (below -250) or the overbought area (above +250) means a trend reversal in the opposite direction is approaching.

The material has been provided by InstaForex Company - www.instaforex.com #

How to Trade the GBP/USD Pair on August 26? Simple Tips and Analysis of Transactions for Beginners

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Analyzing Friday's trades:

GBP/USD on 1H chart

The GBP/USD pair continued its "flight to the moon" on Friday. Throughout the day, the U.S. dollar fell another 130 pips, doing so quickly, simply, and freely. The U.S. currency started to fall early in the morning despite the lack of macroeconomic or fundamental events in both the UK and the U.S. at that time. The market simply continued to sell off the dollar in anticipation of Federal Reserve Chair Jerome Powell's upcoming speech in Jackson Hole. We had expected the market to react preemptively to Powell's dovish rhetoric and that Friday would see a reversal. However, the market kept seizing any opportunity to buy the pair. It doesn't matter which factors have been addressed or whether there are any factors for the daily decline of the dollar. All of that is irrelevant. The upward movement is entirely illogical. Bank of England Governor Andrew Bailey's speech was of no interest from the start. The fact that the BoE is easing its monetary policy is even less relevant. Everything revolves around the dollar and the Fed's interest rate cuts in September.

GBP/USD on 5M chart

In the 5-minute time frame, two buy signals were formed around the 1.3102-1.3107 area on Friday. After the first buy signal was formed, the price failed to rise by 20 points, so at the time the second signal was generated, novice traders could still be in the market. Since Powell's speech started around the same time, it would have been prudent to set a Stop Loss to break even or just below the 1.3102-1.3107 area, which justified the risks. Subsequently, the price surged to 1.3210, where profits could be realized.

How to trade on Monday:

In the hourly time frame, GBP/USD has a good chance of sustaining the global downward trend, but a local uptrend is currently in progress. The British pound is still overbought, the dollar is undervalued, and the market continues to use every opportunity to buy the British currency and sell the dollar. It often ignores any unfavorable reports and events.

On Monday, the pair might retrace slightly downward, but the uptrend is unlikely to be disrupted. Trading can be done from the 1.3210 level, from which the price bounced twice on Friday.

The key levels to consider on the 5M timeframe are 1.2605-1.2633, 1.2684-1.2693, 1.2748, 1.2791-1.2798, 1.2848-1.2860, 1.2913, 1.2980-1.2993, 1.3043, 1.3102-1.3107, 1.3145, 1.3210. On Monday, while no significant events are scheduled in the UK, the release of the durable goods orders report in the U. S. could significantly influence market dynamics. Despite this, the market's relentless selling of the dollar should be kept in mind.

Basic rules of the trading system:

1) The strength of a signal is determined by the time it takes for the signal to form (bounce or level breakthrough). The less time it took, the stronger the signal.

2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be ignored.

3) In a flat market, any currency pair can form multiple false signals or none at all. In any case, it's better to stop trading at the first signs of a flat market.

4) Trades should be opened between the start of the European session and midway through the U.S. session. After this period, all trades must be closed manually.

5) In the hourly time frame, trades based on MACD signals are only advisable amidst substantial volatility and an established trend confirmed by a trendline or trend channel.

6) If two levels are too close to each other (5 to 20 pips), they should be considered support or resistance.

7) After moving 20 pips in the intended direction, the Stop Loss should be set to break even.

What's on the charts:

Support and Resistance price levels: targets for opening long or short positions. You can place Take Profit levels near them.

Red lines: channels or trend lines that depict the current trend and indicate the preferred trading direction.

The MACD (14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a source of signals.

Important speeches and reports (always noted in the news calendar) can profoundly influence the movement of a currency pair. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.

Beginners should always remember that not every trade will yield profit. Developing a clear strategy and effective money management is key to success in trading over a long period.

The material has been provided by InstaForex Company - www.instaforex.com #

How to Trade the EUR/USD Pair on August 26? Simple Tips and Analysis of Transactions for Beginners

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Analyzing Friday's trades:

EUR/USD on 1H chart

The EUR/USD pair continued its relentless rise on Friday. During the week, we assumed that Jerome Powell's speech on Friday had already been priced in, as the U.S. dollar had been declining throughout the week, and the market naturally anticipated only a dovish stance from the Federal Reserve head. However, as it turned out yesterday, the market still seizes any opportunity to sell the dollar. It doesn't matter how often the same event needs to be priced in. In the evening, when Powell announced readiness to begin monetary easing in September, the market received a new reason to sell the dollar, resulting in another sharp decline.

From a technical perspective, the situation remains unchanged. The price is still above the trendline, implying further growth for the euro. The single currency may benefit from this situation since the macroeconomic and fundamental backdrop from the Eurozone does not suggest that the euro should strengthen. However, the market ignores these factors, so the euro continues to rise.

EUR/USD on 5M chart

Two trading signals were formed in the 5-minute chart on Friday. The price bounced off the 1.1132 level during the European session, leading to a 20-pip drop. The short position closed with minimal profit or at breakeven. Before Powell's speech, it was advisable to exit all trades or set a Stop Loss to break even. A buy signal was formed around the same level, but there was no opportunity to react.

Trading tips on Monday:

EUR/USD continues to form an upward trend supported by a trend line in the hourly time frame. We believe the euro has fully factored in all the bullish factors, so we do not expect further upward movement. However, the market again shows it is ready to react to almost any event by panic selling the dollar. And if there are no events, it is prepared to sell the dollar for the sake of it. We can expect a drop in the pair after it consolidates below the trend line.

On Monday, novice traders might anticipate a decline, as prices cannot rise forever. However, it is important to understand that we have a strong uptrend and a clear breakout of the next resistance level at 1.1184.

The key levels to consider on the 5M time frame are 1.0726-1.0733, 1.0797-1.0804, 1.0838-1.0856, 1.0888-1.0896, 1.0940, 1.0971, 1.1011, 1.1048, 1.1091, 1.1132, 1.1184, 1.1275-1.1292. On Monday, no major events are scheduled in the Eurozone, while the U.S. will release a significant report on durable goods orders. This report is unlikely to affect the overall market sentiment, but its strong figures might temporarily support the dollar.

Basic rules of the trading system:

1) The strength of a signal is determined by the time it takes for the signal to form (bounce or level breakthrough). The less time it took, the stronger the signal.

2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be ignored.

3) In a flat market, any currency pair can form multiple false signals or none at all. In any case, it's better to stop trading at the first signs of a flat market.

4) Trades should be opened between the start of the European session and midway through the U.S. session. After this period, all trades must be closed manually.

5) In the hourly time frame, trades based on MACD signals are only advisable amidst substantial volatility and an established trend confirmed by a trendline or trend channel.

6) If two levels are too close to each other (5 to 20 pips), they should be considered support or resistance.

7) After moving 20 pips in the intended direction, the Stop Loss should be set to break even.

What's on the charts:

Support and Resistance price levels: targets for opening long or short positions. You can place Take Profit levels near them.

Red lines: channels or trend lines that depict the current trend and indicate the preferred trading direction.

The MACD (14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a source of signals.

Important speeches and reports (always noted in the news calendar) can profoundly influence the movement of a currency pair. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.

Beginners should always remember that not every trade will yield profit. Developing a clear strategy and effective money management is key to success in trading over a long period.

The material has been provided by InstaForex Company - www.instaforex.com #

Forecast for GBP/USD on August 23, 2024

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The British pound attempted to rise yesterday but failed. However, it consolidated above the 1.3080 level with a daily candle. The future direction will now depend on Federal Reserve Chair Jerome Powell's speech at the bankers' symposium in Jackson Hole.

We believe the head of the US central bank will not confirm the market's expectations of a 2.00% rate cut by the end of the year, which would strengthen the dollar and, consequently, push the pound below the 1.2995 level. Such a decline would open the way to 1.2859. The MACD line is also approaching this level.

In the 4-hour chart, the price is consolidating above the 1.3080 level. The Marlin oscillator's move towards negative territory indicates the weakness of the observed consolidation. The MACD line is approaching the 1.2995 level. Therefore, consolidating below this level would present good prospects for the bears.

The material has been provided by InstaForex Company - www.instaforex.com #

Forecast for USD/JPY on August 23, 2024

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In the past two days, the price has attempted twice to break through the resistance at 146.50, reinforced by the 23.6% Fibonacci level. The attempts were not successful. Yesterday, the US stock index S&P 500 fell by 0.89%, and this morning, Asian markets are repeating the risk-off move, with the yen acting as a risk-off tool, meaning it is being bought against the dollar. A breakthrough of the 144.30 support level would open the target range of 139.70–140.27, the low from December 2023.

In the 4-hour chart, the price has again fallen below the MACD line. The Marlin oscillator seems to be moving back below the zero line. A bearish breakout is approaching.

Two key points in the current situation are worth noting: today's inflation data from Japan showed an increase in the core CPI from 2.6% year-over-year to 2.7% year-over-year. The overall CPI remained at 2.8% year-over-year. This data has already reinforced investor expectations for a rate hike by the Bank of Japan in the fourth quarter, as reported by the Japanese press. Furthermore, the central bank governor is speaking in parliament today, where he may provide more specific details about the central bank's plans. The market may see a second wave of unwinding carry trade speculation if these expectations are confirmed. All these factors are strengthening the yen against the dollar.

The material has been provided by InstaForex Company - www.instaforex.com #

Review of GBP/USD on August 22; Business Activity Indexes Also Need to Be Addressed

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The GBP/USD pair continued to rise on Thursday. Some might say that the macroeconomic backdrop once again favored the British currency, and technically, they would be right. In the morning, reports on business activity in the services and manufacturing sectors were published in the UK, which exceeded expert forecasts. Isn't that a good reason for more purchases of the pound? To some, this movement seems logical. But we'd like to ask a simple question: What if, over the next year, all reports from the UK are stronger than forecasts, and those from the US are weaker? Would the GBP/USD pair rise to 1.5? To 1.7?

We want to point out that while reports are important, they are not the sole factor. Yes, there should be a reaction to them, but typically, this reaction occurs because of discrepancies between actual figures and forecasts. In other words, the market reacts not to changes in the economy but to discrepancies from its expectations.

This raises the question: What if expectations for British data are always understated, and those for American data are always overstated? Will the British currency rise indefinitely? We've highlighted a crucial point: In recent months, when the Federal Reserve's rate has remained at its peak, experts did not anticipate a slowdown in inflation or a drop in major macroeconomic indicators. This creates a situation where the American economy is expected to deliver exceptionally high figures while the Fed is expected to lower rates. But clearly, under the most hawkish monetary policy in decades, economic indicators cannot keep rising!

Thus, we argue that the problem with the dollar is not due to weak data from the US or the Fed's monetary policy. The data aren't weak, and monetary policy hasn't been eased yet. So why is the dollar falling? At the same time, the Bank of England is easing, and macroeconomic indicators in the UK are certainly not better than in the US (for the most part). The market is responding to its expectations and desires. And this isn't just about ordinary retail and private traders. This concerns the major players who drive the market.

On Wednesday evening, another Fed meeting minutes were published, which could be interpreted in any direction. And that's precisely what the market did. Even though it contained no direct hints about a rate cut in September, the market deemed it dovish and continued to sell the US dollar. In other words, a scenario unlikely to occur for the past eight months continues to be acted upon by the market almost daily. If anyone sees sacred meaning and logic in this, we are very envious of them.

As a result, the British currency continues to rise, and today, the dollar might fall even further. Even though Powell's speech has been priced in by the market about five times already, why not take advantage of a new reason to buy GBP/USD?

The average volatility of the GBP/USD pair over the past five trading days is 79 pips. For the GBP/USD pair, this value is considered "average." On Friday, August 23, we expect movement within the range bounded by levels 1.2999 and 1.3157. The upper channel of the linear regression is directed upwards, signaling the continuation of the uptrend. The CCI indicator may soon enter the overbought zone again and has already formed a bearish divergence.

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 GBP/USD pair continues its illogical rise but retains a good chance of resuming a downward momentum. We are not considering long positions at this time, as we believe that the market has already addressed all the bullish factors for the British currency (which are not much) several times. The market continues to buy without any apparent reason. Short positions could be considered at least after the price settles below the moving average, with targets at 1.2939 and 1.2878. The current movement of the pair has nothing to do with the concepts of "logic" and "regularity."

Explanations for Illustrations:

Linear Regression Channels: help determine the current trend. If both are directed in the same direction, it means the trend is strong.

Moving Average Line (settings 20,0, smoothed): determines the short-term trend and the direction in which trading should be conducted.

Murray Levels: target levels for movements and corrections.

Volatility Levels (red lines): the probable price channel in which the pair will spend the next 24 hours, based on current volatility indicators.

CCI Indicator: Entering the oversold area (below 250) or the overbought area (above +250) means a trend reversal is approaching.

The material has been provided by InstaForex Company - www.instaforex.com #