03.05.201909:42 Forex Analysis & Reviews: GBP/USD. May 3. The trading system "Regression Channels". The political crisis in the UK remains

4-hour timeframe

Technical details:

The upper linear regression channel: direction - sideways.

The lower linear regression channel: direction - down.

The moving average (20; smoothed) - up.

CCI: 44.6443

The British pound, despite the important event of the last day in the form of a meeting of the Bank of England and the announcement of its results, did not show a proper reaction to this event. Of course, the markets were waiting for important and new information from the British regulator. Today, all the attention of traders will be focused on America and reports on unemployment, wages, and NonFarm Payrolls. These reports will determine the mood of market participants in the US trading session until the end of the day. Although positive forecasts for these reports may cause a moderate strengthening of the US dollar at the European trading session. In the UK today, only the index of business activity in the services sector will be published, however, traditionally, it can also have a strong enough impact on the course of trading. Especially if the total value of the index is above 50. The pound, unlike the euro, maintains an upward trend. Most likely, due to new positive expectations of traders about the favorable outcome of Brexit. However, as in most cases earlier, these expectations are not confirmed. In the meantime, Theresa May fired Defense Secretary Gavin Williamson, explaining the decision as a complete loss of confidence in his Department. May accused Williamson of transferring confidential information to journalists. Well, another reshuffle in the British government. Over the past year, we have even got used to it.

Nearest support levels:

S1 - 1.3031

S2 - 1.3000

S3 - 1.2970

Nearest resistance levels:

R1 - 1.3062

R2 - 1.3092

R3 - 1.3123

Trading recommendations:

The pair GBP/USD continues to be adjusted. Thus, it is now recommended to consider buy orders with targets at 1.3062 and 1.3092, but after the completion of the correction. Reports from the United States can have a strong influence on the course of trading, so during their release, you should trade with heightened caution.

Sell positions should be considered after the consolidation of the pair below the moving average with first targets at 1.2970 and 1.2939. Today, the trend in the instrument may change.

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

Explanations for illustrations:

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

The lower 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.

Heiken Ashi is an indicator that colors bars in blue or purple.