FX.co ★ GBP / USD. 18th of February. The trading system. "Regression Channels". May is going to Brussels again

4-hour timeframe

Technical details:

The senior linear regression channel: direction - up.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - sideways.

CCI: 107.8597

The currency pair GBP / USD on Monday, February 18, continues the upward movement that started on Friday and has overcome the moving average. Meanwhile, the confrontation between the British Parliament and Theresa May continues. This week, the Prime Minister of Great Britain will again go to Brussels to discuss the conditions of Brexit with all EU leaders once again. We believe that this May trip will also end in nothing. May herself understands this, but she really needs to create the maximum appearance of her efforts to negotiate with Brussels. In this case, she will be able to shift the responsibility for Brexit to the parliamentarians, based on the fact that she tried her best to get new concessions for the country from the EU. Theresa May has already managed to speak in Parliament once again and called on members of her party to unite and sacrifice their own preferences for a higher goal - the future of the country. She called for support of her agreement on withdrawal from the EU, hinting that if the parliament rejects this document again, that Brexit can stop completely. In general, nobody expected anything else from Theresa May. It is clear that Ms. May will continue to push her Brexit plan without any major changes, since the European Union is not going to take these changes. In the meantime, less and less remains, and it is possible that the date of the "divorce" will have to be postponed to a later date.

Nearest support levels:

S1 - 1.2878

S2 - 1.2848

S3 - 1.2817

Nearest resistance levels:

R1 - 1.2909

R2 - 1.2939

R3 - 1.2970

Trading recommendations:

The pair GBP / USD has fixed above the MA, therefore the trend in the instrument temporarily changed to ascending. Now, it is recommended to consider long positions with targets of 1.2939 and 1.2970.

Short positions will again become relevant after the price is fixed back below the moving average line. The targets, in this case, will be Murray levels of 1.2848 and 1.2817.

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.