GBP / USD. 6th of August. The trading system “Regression channels”. The British pound continues to fall down with pleasure
The senior channel of linear regression: direction – down.
The younger channel of linear regression: direction – down.
Moving average (20, smoothed) – down.
The GBP / USD currency pair continued its downward movement on August 3 at a steady pace, no matter what. Macroeconomic statistics from the States had a very indirect effect on the course of trading, and new information on the escalation of the conflict between America and China only spurred traders to new purchases of the dollar, although on Friday evening it would be much more logical to fix profit on short positions. Today, August 6, the calendar of macroeconomic events is absolutely empty. Thus, from a technical point of view, correction is still very likely, especially given the strong overbought of the CCI indicator, which has not been worked out. However, after the meetings of the Fed and the Bank of England, traders have already moved to the new massive purchases of the US dollar, and now it will be necessary to try hard to break this new downward trend. As before, the correction can be determined by turning the indicator Heikin Ashi up. At the moment, not a single purple bar has been formed.
Nearest support levels:
S1 = 1.2939
S2 = 1.2878
S3 – 1.2817
Nearest resistance levels:
R2 = 1.3062
R3 = 1.3123
The pair GBP / USD continues to move down. Thus, now it is recommended to maintain a sell order or to increase it with the target of 1.2939. The signal to the manual closing of positions will be the color of 1-2 bars indicator Heikin Ashi in purple.
Long positions are recommended to be considered in case traders overcome the moving average line. In this case, the bulls will have a new opportunity to form a short-term uptrend, although now there is not much chance of that.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The upper channel of linear regression is the blue lines of unidirectional motion.
The junior channel is linear-violet lines of unidirectional motion.
CCI – the blue line in the regression window of the indicator.
Moving average (20; smoothed) – the blue line on the price chart.
Levels of Murray – multi-colored horizontal stripes.
Heikin Ashi is an indicator that color bars in blue or purple.