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: -68.2708
As we have already written many times, there is one huge flaw in Boris Johnson's politics and plans, with which most of the issues are connected. Namely: how is the Prime Minister going to "push" the "hard" Brexit through Parliament? A lot of options were called, ranging from the dissolution of Parliament, ending with early elections. However, none of the options gives a guarantee for the implementation of Johnson's plans. Moreover, early elections before October 31 may have the opposite effect. The popularity of conservatives in the UK has declined significantly in recent years due to the fact that at first Theresa May could not implement Brexit, and now everything is in anticipation of the plans of Boris Johnson, which for the UK is even worse than May's plans. Thus, Johnson's party may have a serious shortfall of votes. Therefore, it is unlikely that the elections will be held before October 31. However, the suspension of the work of the Parliament will not give anything, as the deputies hedged and adopted an amendment that does not allow Johnson without the approval of the Parliament to implement the country's withdrawal from the EU. And Boris Johnson, meanwhile, decided to use the weapon of Theresa May, which shot only blank cartridges: to put pressure on Parliament, saying that "it is time to unite to make an important decision", "Parliament must take Brexit, as it is the will of the people." In general, Johnson with such statements raise (or thinks that raises) his rating and indicates that it is the Parliament that is stopping the Brexit process. Well, the British pound still cannot find any reason to strengthen. Today, August 9, the UK will publish GDP figures for June, for the second quarter and industrial production. All indicators are projected to decline.
Nearest support levels:
S1 – 1.2085
S2 – 1.2024
S3 – 1.1963
Nearest resistance levels:
R1 – 1.2146
R2 – 1.2207
R3 – 1.2268
Trading recommendations:
The GBP/USD pair continues to trade near the moving average line and tends to resume a downward movement. The bulls did not have enough strength even to consolidate above the moving. Therefore, we recommend that you continue buying the greenback with the targets of 1.2085 and 1.2024.
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) – blue line on the price chart.
Murray levels – multi-colored horizontal stripes.
Haiken Ashi is an indicator that colors bars in blue or purple.
