empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

19.07.201814:42 Forex Analysis & Reviews: GBP / USD. July 19. The trading system "Regression channels". Hopes for pound growth are melting in front of you

Long-term review
This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

4-hour timeframe

Exchange Rates 19.07.2018 analysis

Technical data:

Senior channel of linear regression: direction - down.

The younger channel of linear regression: direction - down.

Moving average (20, smoothed) - down.

CCI: -109.5957

On July 18, most of the trading day, the GBP / USD currency pair continued strong downward movement and only in the second half of the day began a weak upward correction. This correction may end already at the European trading session, and the downtrend - to resume. The younger linear regression channel has already turned down, so now all the trend indicators indicate a downward trend. Today, the main hope of the pound sterling for recovery will be related to the publication of reports on retail sales in the UK for June. Forecasts predict a slowdown in the growth rate of this indicator to 0.4% in monthly terms. If the annual indicator also decreases, this will be a new basis for traders for new purchases of the American currency. From America today, no macroeconomic reports are expected, except for a small number of applications for unemployment benefits.

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:

For a pair of GBP / USD, the correction may end. This can signal the formation of 1-2 bars of blue color indicator Heikin Ashi. In this case, it is recommended to open new shorts with targets of 1,300 and 1,2939.

Long will become relevant only not before the traders overcome the moving average line with a target of 1.3306. However, the price is still far enough from the removals, so there is very little chance of overcoming it today.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The upper channel of linear regression is the blue lines of unidirectional motion.

The junior channel is linear-violet lines of unidirectional motion.

CCI - the blue line in the regression window of the indicator.

Moving average (20; smoothed) - the blue line on the price chart.

Levels of Murray - multi-colored horizontal stripes.

Heikin Ashi is an indicator that color bars in blue or purple.

Paolo Greco
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off