4-hour timeframe

Technical details:

Higher linear regression channel: direction - up.

Lower linear regression channel: direction - up.

Moving average (20; smoothed) - down.

CCI: -155.0769

The GBP / USD currency pair continues to fall without any signs of the beginning of a correction. Everybody knows about the failure of the Brexit negotiations at the EU summit. In principle, Theresa May said in an interview after the summit that all the key issues remained unresolved. According to her, there are few unsolved issues, but the disagreements of the parties to these are very serious. It is clear that the topic is about the North Irish border and the trade relations between Britain and the EU after Brexit. Thus, we can say that we did not hear anything new even after the end of the summit. For the British pound sterling, the whole story can end very badly in the medium term. In recent months, the pound has grown quite a few times on rumors that the agreement is "almost signed", which every time was not confirmed by anything. Now, when the last two rounds of negotiations ended in failure, traders will be very careful about any kind of rumors concerning Brexit. Thus, we now believe that in order for the pound sterling to show growth, the fundamental factors should have a heavy impact and confirmed. Given the weakened inflation and weak retail sales, it is difficult to imagine what could be the information that will cause a new demand for the British currency.

Nearest support levels:

S1 - 1.3000

S2 - 1.2939

S3 - 1.2878

Nearest resistance levels:

R1 - 1.3062

R2 - 1.3123

R3 - 1.3184

Trading recommendations:

The GBP/USD pair continues to move down. Thus, it is now recommended to remain in short positions with targets at 1.3000 and 1.2939 until the Heiken Ashi indicator turns up, which will mark the beginning of an upward correction.

Buy positions can be opened with the target of 1.3184 after fixing the price above the moving average. However, the fundamental reasons for such a strong growth of the British currency are not expected.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The higher linear regression channel is the blue lines of unidirectional movement.

The lower linear channel is the purple lines of unidirectional movement.

CCI is a 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.