4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: 57.9859
The GBP / USD currency pair with great difficulty is kept slightly above the moving average line. Yesterday's results of the Fed meeting had virtually no effect on the movement of the currency pair. Volatility has not increased, we also did not see any sharp reversals or amplification of the movement. The results of the meeting were obvious, and Powell's performance was neutral. Today in the UK, the results of the Bank of England will be announced. The probability of a change in the size of a key bet is zero. Mark Carney's speech is not scheduled for today. Thus, a loud, at first glance, an event can be ignored by market participants. Also in the UK today, a report on retail sales for November will be published. Growth is expected to decline, but what will be the real value? Perhaps far below the forecast. At the same time, it was reported that London had begun preparations for Brexit without agreements. The government claims that the more likely is the option with a "soft" Brexit, but recommend preparing for a "hard" version. This once again proves the fears that the parliament is unlikely to vote "for" Theresa May's "Checkers" plan. In general, as before, the uncertainty over the Brexit issue remains much more than the resolved points.
Nearest support levels:
S1 - 1.2634
S2 - 1.2573
S3 - 1.2512
Nearest resistance levels:
R1 - 1.2695
R2 - 1.2756
R3 - 1.2817
Trading recommendations:
The currency pair GBP / USD with great difficulty is held slightly above the MA. Thus, formally relevant are long-term goals with targets of 1.2695 and 1.2817. But the growth potential of the British currency is very limited, therefore, it is recommended to trade for a raise in small lots and after the Heikin Ashi indicator turns up.
Short positions are recommended to open if the pair consolidates below the moving average. In this case, the targets for the downward movement will be the levels of 1.2573 and 1.2512.
In addition to the technical picture, you should also consider the fundamental data and the time of their release.
Explanations for illustrations:
The senior linear regression channel is the blue lines of the unidirectional movement.
The junior 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.
