empty
 
 
18.10.2018 01:33 PM
GBP / USD. October 18th. The trading system "Regression Channels". There is no positive news about Brexit.

4 -hour timeframe

This image is no longer relevant

Technical details:

The senior linear regression channel: direction - up.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - down.

CCI: -138.9756

The GBP / USD currency pair continues its downward movement in anticipation of the announcement of the EU summit results. Meanwhile, European Parliament President Antonio Tajani told the press that Theresa May did not submit any new proposals for the Brexit terms. This can mean two things. First, Theresa May pulls time. This option is possible, as the British Premier needs to think not only about how to negotiate with the EU, but also about how to get support under the Brexit plan in the UK Parliament. Thus, it cannot make concessions, and in this case, it remains almost the only option. The second is that there are no new proposals, and there will not be, since Theresa May knows for sure that the new plan will not support Parliament. In general, the situation is still a stalemate, and the likelihood that there will be no deal between the EU and Britain is growing every day. The pound sterling responds to this data quite logically. Most of the pound's take-off periods in recent months have been associated precisely with "insider" information that the parties are close to signing an agreement. However, it was not confirmed. And now, when official negotiations are underway, and no optimistic information is being received, traders reasonably believe that the parties have again reached an impasse. Today in the UK, a report on retail sales will be published. Weak data could put even more pressure on the British currency.

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:

The currency pair GBP / USD continues to move down. Thus, it is now recommended to remain in short positions with targets at 1.3062 and 1.3000 until the Heikin-Ashi indicator turns to the top, which will mean a turn of corrective movement.

Buy-positions will become relevant with the aim of 1.3245 after the price is fixed back above the moving average. To do this, the pound will require very strong data on retail sales or information about the positive progress in the Brexit talks.

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 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.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback