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: -84.9076
It is very difficult to give any description of the first week of Boris Johnson's reign. During this week, the pound sterling managed to fall by 3.5 cents, Johnson himself – to make several contradictory statements and to heat relations with the European Union, putting him a few ultimatums, and the nearest neighbors of the UK, Northern Ireland and Scotland, are already dissatisfied with the new Prime Minister. Scottish Minister Nicola Sturgeon was not happy with the meeting with Johnson and believes that Boris is purposefully promoting the Kingdom to Brexit without a deal. And the Scots are very concerned about this, as well as a huge number of Britons, including the ordinary population, experts, politicians and the head of the Bank of England Mark Carney. Everyone understands that Brexit without a "deal" is a crushing blow to the UK economy. Therefore, few people support Johnson's policy. However, it is not necessary to ask the most obvious question: why then Johnson was elected Prime Minister if it was clear before the election which version of Brexit did he support? Still, Brexit – this is one of the pressing issues, and the management of the whole country can only be a force for a strong policy that enjoys the trust of party members. More charismatic personality than Johnson in the Conservative Party was not found. Perhaps Jeremy Hunt would be more tolerant in negotiations with the EU, but then the dialogue with Brussels could drag on for many years. In the meantime, not only the EU can lose the UK, but the UK – Scotland. Since Nicola Sturgeon reiterated that the country is preparing for a new referendum on independence.
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 currency 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, before the Heiken Ashi indicator turns to the top. 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 1.2390 and 1.2451 not earlier than the price consolidation above the moving average line. However, in the coming days, this development is not expected.
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.
