You are here: Home > articles > Forex > GBP / USD. December 18th. The trading system. “Regression Channels”. Pound sterling: hopes for correction
GBP / USD. December 18th. The trading system. “Regression Channels”. Pound sterling: hopes for correction
December 18, 2018 11:23 amVideo
Latest News
- Trading Signals for EUR/USD for May 3-5, 2024: sell below 1.0803 (overbought – 5/8 Murray) May 3, 2024
- Trading Signals for GOLD for May 3-5, 2024: sell below $2,320 or below $2,300 (21 SMA – 200 EMA) May 3, 2024
- Technical Analysis – GBPUSD advances above descending trendline May 3, 2024
- USD experiences day X May 3, 2024
- Bitcoin licks wounds as Fed comes on the rescue – Crypto News May 3, 2024
- GBP/USD: trading plan for the US session on May 3rd (analysis of morning deals). The pound is preparing to get out of the May 3, 2024
- EUR and GBP may drop May 3, 2024
- EUR/USD: trading plan for the US session on May 3rd (analysis of morning deals). US data will be the key moment of the week May 3, 2024
- USD/JPY: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- GBP/USD: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- Video market update for May 03, 2024 May 3, 2024
- EUR/USD: Simple trading tips for novice traders on May 3rd (US session) May 3, 2024
- Could the BoE adopt a more dovish stance on Thursday? – Preview May 3, 2024
- EUR/USD. May 3rd. Bulls don’t give up without a fight May 3, 2024
- GBP/USD. May 3rd. Bears are counting on a strong US labor market May 3, 2024
- Market Comment – Stocks enjoy Fed-induced bounce as dollar slips ahead of NFP May 3, 2024
- Weekly Forex Outlook: 03/05/2024 – BoE and RBA decisions headline a calm week May 3, 2024
- Week Ahead – BoE and RBA decisions headline a calm week May 3, 2024
- USD/JPY: trading tips for beginners for European session on May 3 May 3, 2024
- GBP/USD: trading tips for beginners for European session on May 3 May 3, 2024
4-hour timeframe
Technical details:
The senior linear regression channel: direction – down.
The junior linear regression channel: direction – down.
Moving average (20; smoothed) – sideways.
CCI: 46.7664
The GBP / USD currency pair has once again adjusted to the moving average line, but the bulls are still not strong enough to overcome it. The price rebound from the MA may trigger a resumption of the downward movement, however, its potential is now also limited due to the lack of new negative information on the Brexit topic. It should be said that in recent days, the Brexit theme has gone from the front pages of the media. Firstly, all deputies are preparing to go on vacation, respectively, no important decisions or statements from December 20 will come from the British Parliament. Secondly, Theresa May did everything possible to postpone the key moment for Britain at a later date (this is about parliamentary voting). Third, Theresa May is still walking along the blade of a knife. The media is filled with rumors that the prime minister will leave his post anyway after the beginning of the transition period. May received political immunity for only 1 year from her party, not from the entire House of Commons. In general, this whole situation is just paused at the moment. And after the new year may begin to discourage markets. Still not clear on what to count May, shifting the vote to January? Will she succeed in luring to her side the necessary number of deputies to pass the bill under the Checkers plan?
Nearest support levels:
S1 – 1.2573
S2 – 1.2512
S3 – 1.2451
Nearest resistance levels:
R1 – 1.2634
R2 – 1.2695
R3 – 1.2756
Trading recommendations:
The currency pair GBP / USD continues the downward trend. Therefore, turning the Heikin Ashi indicator down will be a signal to open new sell orders with a target of 1.2512. However, the new strong fall of the pound requires fundamental reasons, which are not yet available. Fall potential is small.
Buy-positions are recommended to consider the minimum lots with the goal of 1.2695 if traders manage to overcome the moving. Pound buyers are now extremely small, so the growth potential of the currency is also limited.
In addition to the technical picture, you should also consider 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
Related Posts: