4-hour timeframe
Technical data:
The upper linear regression channel: direction – down.
The lower linear regression channel: direction – down.
The moving average (20; smoothed) – down.
CCI: -192.8115
Yesterday, we wrote that the whole situation with Brexit begins to look as if the UK government is deliberately delaying this process, while completely ignoring the position of the European Union. Today, the media received new information from a member of the British government Michael Gove. It follows that the British government continues to hope that the EU will change its mind and make concessions on the issue of the North Irish border. However, Johnson and his team understand that the probability of this is still low, and begin to prepare for the "hard" option. And this information is again fully consistent with our assumption that the UK likes to be in a "limbo". The country began to prepare for a "hard" Brexit a year ago when the first problems began to arise in the negotiations with Brussels. Boris Johnson should prepare for the "hard" option, which he himself pushed during the election campaign. And at the same time, to think how he will convince Parliament to support this scenario which will be a crushing blow to the economy of the country and that is why it has already been canceled by the deputies. In the meantime, we do not have a single answer to all the above questions, the pound/dollar pair will remain at a downward peak.
Nearest support levels:
S1 – 1.2360
S2 – 1.2329
S3 – 1.2299
Nearest resistance levels:
R1 – 1.2390
R2 – 1.2421
R3 – 1.2451
Trading recommendations:
The GBP/USD pair continues its downward movement, so now it is still recommended to sell the pound sterling with the targets at the levels of 1.2329 and 1.2299. The initiative in the market continues to remain in the hands of bears.
It will be possible to buy the pound/dollar pair with the goals of 1.2482 and 1.2512 not earlier than the reverse consolidation of the price above the moving average line. In this case, the bulls will receive another ghostly hope for strengthening.
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.
