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Trading Conditions
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4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -105.2285
The currency pair GBP / USD on the third trading day of the week completed the Murray level of "0/8" - 1.2695 and started the next minimal correction. Fundamental causes and grounds for a strong correction in the course of today have been reported. Thus, the reasons are purely technical, fixing part of open deals for a fall. The ADP report on the level of employment in the US private sector may slightly strengthen or weaken the corrective mood on October 31, but it is unlikely to change it drastically. In the current situation, the pound can be saved either by a loud and positive event in the UK, or by a loud negative event in the USA, or the satiety of traders from the pair's sales. Now, we don't have to expect the first and second one, and as long as the price is below the moving average line, the third one too. Thus, it will not be surprising to resume the downward movement of the instrument today or tomorrow. Meanwhile, Theresa May refuted rumors of impending early parliamentary elections. According to her, this is not in the national interest. In the media, with might and main the possible resignation of May is being discussed. Allegedly, about 50 politicians within the Party of May are ready to sign a document that will dismiss the current prime minister. Recall that 50 votes is enough to deprive May of her position.
Nearest support levels:
S1 - 1,2695
S2 - 1.2634
S3 - 1.2573
Nearest resistance levels:
R1 - 1.2756
R2 - 1.2817
R3 - 1.2878
Trading recommendations:
The currency pair GBP / USD has begun to be adjusted. Thus, it is recommended to wait for the completion of the correction, as indicated by the Heikin Ashi indicator, having painted 1-2 bars in blue. The target for short positions is 1.2695.
It is recommended to open long positions after overcoming the MA. In this case, the trend, at least in the short term, will change to upward, and the first goal will be the level of 1.2939.
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 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.
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