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4-hour timeframe
Technical data:
The upper linear regression channel: direction – down.
The lower linear regression channel: direction – sideways.
The moving average (20; smoothed) – sideways.
CCI: -15.0479
The currency pair pound/dollar continues to trade along the moving average line, directed sideways. In the last two days, the pair formed an absolute flat. No new interesting reports on the topic of Brexit were available to traders, macroeconomic statistics were not published on Friday in the UK, several reports in the States did not attract the attention of traders, as the G20 summit began. However, in the end, no really important and interesting information was received from this summit either. At the weekend, the candidate for Prime Minister Boris Johnson once again said that Brexit must be carried out before October 31, otherwise "democracy will be a laughing stock", but there was no response from the market to this message either. Today in the UK, the index of business activity in the manufacturing sector will be published, which went under the mark of 50.0. Thus, the British pound is unlikely to expect support from this report. Until the end of the flat, the pound/dollar pair will remain unattractive for trading. Both channels of linear regression are directed downwards, so the bulls are still extremely weak.
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 GBP/USD pair failed to overcome the level of 1.2756, which led to a consolidation below the moving average and a sideways movement. We recommend that you wait until the flat is completed, and then resume trading in accordance with the direction of the 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.
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