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. Nov. 1. The trading system. “Regression Channels”. On the eve of the meeting of the Bank of England, the pound

November 2, 2018 Analytics


4-hour timeframe


Technical details:

The senior linear regression channel: direction – up.

The younger linear regression channel: direction – down.

Moving average (20; smoothed) – sideways.

CCI: 108.6312

The GBP / USD currency pair has worked out a moving average line on a message from the S & P rating agency that the Brexit negotiations can still be completed successfully. It is clear that this is only an assumption, but at the disposal of traders, there are no more fundamental factors capable of supporting the pound. Also today in the UK, the outcome of the meeting of the Bank of England will be announced. No change in monetary policy is expected, so the key event of the day will be the speech of the chairman of the British regulator, Mark Carney. But in his speech, Carney can touch on the topic of monetary policy, the UK macroeconomic indicators, Brexit negotiations and the possible consequences of leaving the EU without a “deal”. All this information will be very interesting to market participants and can cause a strong reaction. Of course, Carney has few opportunities to support the pound. Most likely, he will express concern about a possible exit from the EU without an agreement and will hint at the unpleasant consequences of such a “divorce”. This, in turn, may cause new pressure on the pound sterling. The likelihood that his speech will be optimistic is low, and given the strengthening of the pound yesterday-today, we can say that the traders have already worked out all the optimism.

Nearest support levels:

S1 – 1,2817

S2 – 1.2756

S3 – 1.2695

Nearest resistance levels:

R1 – 1.2878

R2 – 1.2939

R3 – 1.3000

Trading recommendations:

The currency pair GBP / USD continues to be adjusted. If the price fails to overcome the moving, and the Heikin Ashi indicator turns down, it will be a signal to open new short positions with targets of 1.2756 and 1.2695.

It is recommended to open long positions only after overcoming the MA. In this case, the bulls will seize the initiative for some time, and the target for buy orders will be the level of 1.2939.

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.

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


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