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: -213.5113
So, Boris Johnson created a committee of 6 ministers who will deal with Brexit issues and prepare the country for the "hard" option. This news alone, in principle, was enough for traders to start selling the British pound with a vengeance, although the spirit of "hard divorce" with the European Union has been in the air for a long time. However, no matter how things really are, it is important how it looks. And it looks as if Johnson is blackmailing the European Union by refusing to pay a large sum for the withdrawal from the Alliance, if Brussels does not sit down at the negotiating table for the sake of a new agreement on Brexit. Moreover, it is the European Union that must make concessions on the issue of the North Irish border, so that Johnson will agree to take part in them. To be honest, the position of the new British Prime Minister looks a little absurd now. And it seems that not only do we think so, because in the last two days, the Forex currency market simply gets rid of the British currency in panic. Information about spending about 100 million "cheap" pounds to inform the population about the disordered gap with the EU and advertising should only convince the European Union that Johnson and his government are serious. We still have one small question: how is Boris Johnson going to hold a "hard" Brexit through Parliament? We do not say that it is impossible, but now it is even difficult to imagine how it is possible to convince parliamentarians of the expediency of such a "divorce".
Nearest support levels:
S1 – 1.2146
S2 – 1.2085
Nearest resistance levels:
R1 – 1.2207
R2 – 1.2268
R3 – 1.2329
Trading recommendations:
The GBP/USD pair continues the downward movement, so now it is still recommended to sell the pound sterling with targets at the levels of 1.2146 and 1.2085. The market initiative continues to be in the hands of bears.
It will be possible to buy the pound/dollar pair with the goals of 1.2451 and 1.2512 not earlier than the reverse consolidation of the price above the moving average line. However, such a development is not expected in the coming days
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.
