The upper linear regression channel: direction – down.
The lower linear regression channel: direction – up.
The moving average (20; smoothed) – down.
On Wednesday, May 15, the British pound continues to fall and has already come close to the lows of April. As we have said many times, the way of the pound is now only one – down. There is still no important, and positive news from the UK, so the pound has nowhere to draw inspiration. It would seem that a new date for voting on Brexit has been announced. Laborites and Conservatives, presumably, have come to some agreement, since Theresa May decided to hold the fourth vote. However, we recall that in the last year of such “positive” news was a lot that did not affect the process of adoption of the “deal” on Brexit. Then came the postponement of the date of exit of the country from the EU. Thus, in fact, there was nothing optimistic. Now, if the parliamentarians do accept the Theresa May initiative, it will be really good news. However, Brexit, in any case, will have a negative impact on the UK economy, but that’s another story. The most important thing for the Kingdom now is to complete the epic with Brexit. Until it came to the second referendum and the people’s refusal to withdraw from the EU.
Nearest support levels:
S1 – 1.2909
S2 – 1.2878
Nearest resistance levels:
R1 – 1.2939
R2 – 1.2970
R3 – 1.3000
The pair GBP/USD continues its downward movement. Thus, short positions with targets at 1.2909 and 1.2878 are now relevant, before Heiken Ashi’s indicator turns up, which will indicate a turn of an upward correction.
Buy-positions are recommended to be considered only after the pair is reversed above the moving average with the first targets at 1.3031 and 1.3062. In this case, the bulls will get a new chance to form an upward trend.
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 unidirectional movement.
The lower linear regression channel – the purple line of 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.
The material has been provided by InstaForex Company – www.instaforex.com