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: 124.4577

The British pound sterling halted halfway above the MA, which formally changed the trend for the GBP/USD pair to an upward one. But both linear regression channel is still directed downwards, eloquently pointing to a downward trend. Meanwhile, Donald Trump, who is on a visit to the UK at the invitation of Queen Elizabeth II, said on what terms he supports Brexit. According to the US leader, Brexit should take place as soon as possible, but should not affect the "global economic and financial stability". Earlier, Trump advised London to leave the EU without paying any fines and agreements with Brussels. According to unofficial information, Trump will meet today with Nigel Farage, leader of the Brexit party, and supporters of the "hard" Brexit, to discuss the issues of the fastest exit of the UK from the EU. In general, we can say that the Brexit process is at a "dead point". Until a new Prime Minister is elected, there will be no change in this procedure. Thus, first, we need to wait for June 7, when Theresa May officially resigns as leader of the Conservative party. Secondly, we must wait for the elections to be held for the new conservative leader and Prime Minister. Only after that Theresa May will resign from the post of Prime Minister, and the country will be ruled by a new leader. And only after that can we expect any changes or actions in the Brexit procedure. In the meantime, despite the interception of the initiative in the market bulls, a strong strengthening of the pound should not wait. At any time, bears can again begin to put pressure on the pound sterling.

Nearest support levels:

S1 – 1.2634

S2 – 1.2573

S3 – 1.2512

Nearest resistance levels:

R1 – 1.2695

R2 – 1.2756

R3 – 1.2817

Trading recommendations:

The currency pair GBP/USD overcame the moving average line. Thus, it is now recommended to consider the purchase of the pound sterling in small lots with the targets at 1.2695 and 1.2756.

Short positions should be considered after the consolidation of the pair pound/dollar below the moving average with targets at 1.2573 and 1.2512.

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.