Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader


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Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

Blog Post

GBP / USD. July 19. The trading system “Regression channels”. Hopes for pound growth are melting in front of you

July 19, 2018 Analytics


4-hour timeframe


Technical data:

Senior channel of linear regression: direction – down.

The younger channel of linear regression: direction – down.

Moving average (20, smoothed) – down.

CCI: -109.5957

On July 18, most of the trading day, the GBP / USD currency pair continued strong downward movement and only in the second half of the day began a weak upward correction. This correction may end already at the European trading session, and the downtrend – to resume. The younger linear regression channel has already turned down, so now all the trend indicators indicate a downward trend. Today, the main hope of the pound sterling for recovery will be related to the publication of reports on retail sales in the UK for June. Forecasts predict a slowdown in the growth rate of this indicator to 0.4% in monthly terms. If the annual indicator also decreases, this will be a new basis for traders for new purchases of the American currency. From America today, no macroeconomic reports are expected, except for a small number of applications for unemployment benefits.

Nearest support levels:

S1 = 1.3062

S2 – 1,3000

S3 – 1.2939

Nearest resistance levels:

R1 = 1.3123

R2 = 1.3184

R3 = 1.3245

Trading recommendations:

For a pair of GBP / USD, the correction may end. This can signal the formation of 1-2 bars of blue color indicator Heikin Ashi. In this case, it is recommended to open new shorts with targets of 1,300 and 1,2939.

Long will become relevant only not before the traders overcome the moving average line with a target of 1.3306. However, the price is still far enough from the removals, so there is very little chance of overcoming it today.

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.

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


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