GBP / USD. February 5th.

4-hour timeframe

Technical details

The senior linear regression channel: direction – up.

The younger linear regression channel: direction – up.

Moving average (20; smoothed) – down.

CCI: -117.6714

The currency pair GBP / USD on Tuesday, February 5, has fixed below the moving average line and continues not a too strong downward movement. Meanwhile, the main negotiator from the EU, Michel Barnier, said that the EU would not return to negotiations on the terms of the UK exit from the alliance. According to Barnier, a safety plan is the only working option on the Irish border at the moment. At the same time, the EU is ready to conduct further work on alternative solutions, but only during the transition period. Earlier, similar statements came from other EU leaders, including Angela Merkel and Jean-Claude Juncker. Thus, this means that EU leaders do not intend to sit down at the negotiating table and make additional concessions. At the same time, the British Parliament is not ready to accept the Brexit plan in the form in which it is now. And the stumbling block is the question of the Northern Ireland border. Interesting. The next parliamentary vote is scheduled for February 13th. What may change in the next 8 days? Hardly much. A typical situation, which is called “Path.” However, one of the parties still have to make concessions, otherwise we are waiting for the “hard” version of Brexit, which the UK is also not satisfied. Continues to follow the situation.

Nearest support levels:

S1 – 1.3000

S2 – 1.2939

S3 – 1.2878

Nearest resistance levels:

R1 – 1.3062

R2 – 1.3123

R3 – 1.3184

Trading recommendations:

The currency pair GBP / USD continues the downward movement, so now short positions with targets at 1.3000 and 1.2939 are relevant. Heikin Ashi’s reversal to the top will indicate a round of upward correction.

Orders for the purchase can be re-considered in the event of a reverse price fixing above the moving with the first target of 1.3123. But as we have said, there are no fundamental reasons for the new growth of the pound.

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.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: GBP / USD. February 5th. The trading system. “Regression Channels”. Brexit: The collapse of hopes of Theresa May?

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