Trading Conditions
Products
Tools
4-hour timeframe
Technical data:
The upper linear regression channel: direction – down.
The lower linear regression channel: direction – down.
The moving average (20; smoothed) – sideways.
CCI: 77.7703
On June 12, the pound also resumed its upward movement, having consolidated above the moving average line, however, in the volatility that is usual for the last weeks, that is, low. As we have repeatedly written, bulls are frankly afraid of medium-term purchases of the British currency and are ready to trade intraday only. This explains the relatively low volatility and lack of trend as such. The latest package of macroeconomic statistics from the UK did not disappoint, but this does not mean that everything is fine now on the Foggy Albion. Brexit continues to dominate the Kingdom and until it is resolved, the pound sterling will continue to experience the pressure of the Forex currency market. Today, we recommend to pay attention to the publication of the report on inflation in the US, which can have an impact on the preferences of traders. Meanwhile, Scottish Prime Minister Nicola Sturgeon said that the Scottish people do not accept and support Brexit. According to her, membership in the European Union is extremely beneficial to Scotland economically. Perhaps this is another preparation of the ground for a referendum on leaving the jurisdiction of London. And news of this nature also does not play in favor of the pound sterling.
Nearest support levels:
S1 – 1.2695
S2 – 1.2665
S3 – 1.2634
Nearest resistance levels:
R1 – 1.2726
R2 – 1.2756
R3 – 1.2787
Trading recommendations:
The GBP/USD pair overcame again the moving average line, so now it is recommended to buy the pound sterling again in small lots with the targets at 1.2756 and 1.2787. Both linear regression channel is still directed downwards.
It is recommended to buy the US dollar after fixing the pound/dollar pair below the moving average line with the first targets at 1.2665 and 1.2634. In this case, the bears will take over the initiative again for the pound/dollar pair.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of illustrations:
The upper linear regression channel – the blue line of the unidirectional movement.
The lower linear regression channel – the purple line of the unidirectional movement.
CCI – 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.
Heiken Ashi is an indicator that colors bars in blue or purple.
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.