4-hour timeframe

Technical data:

The upper linear regression channel: direction – down.

The lower linear regression channel: direction – down.

The moving average (20; smoothed) – sideways.

CCI: 183.4429

The British pound continues to move upward with great difficulty. There is plenty of news coming from the UK in recent days, but they are all purely informative. Yesterday, for example, Theresa May and Donald Trump attended a joint press conference, in which Trump said that Brexit will be very beneficial to the UK and should take place as soon as possible. He also said that after Brexit, the US and the UK can sign a "phenomenal" trade agreement, which will increase trade between the countries by 2-3 times. May replied that the relationship between London and Washington is excellent and we can only continue to develop them. Trump also met in London with supporters of Brexit, in particular with the leader of the party "Brexit" Nigel Farage, and discussed some issues related, of course, with Brexit. Both of this news is very interesting for the media, but for traders, they are not of particular use. Despite all the optimism that Trump inspired, the country still has to elect a new leader, after which it will be necessary to bring Brexit to completion, and all this will happen clearly not with the speed that the US leader says. The evening news from Powell supported the pound, but it is still impossible to say that the pound/dollar trend has changed to an upward one, despite the consolidation of the price above the moving average. At any time, the bears can again seize the initiative, and the pound will go to conquer new lows, as, from a fundamental point of view, there are still few reasons for optimism about Brexit.

Nearest support levels:

S1 – 1.2695

S2 – 1.2665

S3 – 1.2634

Nearest resistance levels:

R1 – 1.2726

R2 – 1.2756

Trading recommendations:

The GBP/USD pair continues a slight upward movement. Thus, it is now recommended to consider the purchase of the pound sterling in small lots with targets at 1.2726 and 1.2756.

Short positions are recommended to be considered after the pound/dollar pair is fixed below the moving average line with targets at 1.2604 and 1.2573. In this case, the bears will again take over the initiative on the currency market for GBP/USD.

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 the unidirectional movement.

The lower linear regression channel – the purple line of the 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.