4-hour timeframe
Technical data:
The upper channel of linear regression: direction – down.
The lower channel of linear regression: direction – up.
The moving average (20; smoothed) – down.
CCI: -116.5756
A fresh round of anger and criticism descended on Boris Johnson. And it deservedly collapsed. The fact is that during the last session of Parliament, the Prime Minister mentioned the name of Jo Cox, who was a deputy and an ardent opponent of Brexit, who was killed in June 2016. "The best way to honor Jo Cox and unite this country would be, I think, the implementation of Brexit," Johnson said. Honestly, we also, like the British deputies, do not understand what does Jo Cox, who did not even support the idea of Brexit, have to do with it? Well, if it was the anniversary of her death and deputies led by the Prime Minister wanted to honor her memory. But her name from the lips of Boris Johnson sounded completely unexpected and out of place. The husband of the murdered woman immediately wrote on his Twitter: "It's disgusting how the name Jo is used now. The best way to honor Jo is to all of us (regardless of our views) to uphold what we believe in." Jeremy Corbyn called Johnson's words "shameful." We believe that Boris Johnson has launched a new strategy for action in Parliament. Yesterday, we already wrote about it, today we can assume that the Prime Minister will now specifically anger the deputies, forcing them to pass a vote of no confidence, as he sees this as the only chance for the implementation of the extraordinary elections that he needs so much. However, we do not believe in the implementation of Boris Johnson's ideas. Nevertheless, it is difficult to imagine that parliamentarians who are adults and smart people "pecked" at such a Johnson childhood trick. Most likely, we are already talking about a full-scale war between the Prime Minister and the deputies, where, in addition to the main goal of "winning", any means and methods are used to prick, hurt and provoke the enemy. These are the conclusions in the British Parliament that push us to such conclusions. It all happens a month before the next deadline on Brexit. By the way, Boris Johnson refused to apologize for showing disrespect to the memory of Jo Cox, and Speaker of the House of Commons John Bercow called the situation in the legislature the most toxic in the last 22 years during which he worked in it. Under the barrage of criticism, Boris Johnson was even performed by his sister, journalist and TV presenter Rachel Johnson. She stated: "My brother uses such epithets as "surrender" as if those people who stand in the way of 17.4 million people who supported Brexit should be hanged, drowned and quartered."
The pound in recent days, against the background of the heated situation in the Parliament, regular defeats of Johnson, which used to be regarded by traders as positive moments, and now as negative, as the authority of the government and its ability to implement the will of the people and Parliament every day falls lower, continues to fall. The trend of the pound/dollar pair has changed again to a downward one and for the bulls to return to the market again, new encouraging messages are needed. Fortunately, within the next month, even three weeks, that is, before the summit on October 17-18, we expect them to arrive, as we believe that Johnson's plans for the implementation of "hard" Brexit are not implemented.
Nearest support levels:
S1 – 1.2329
S2 – 1.2299
S3 – 1.2268
Nearest resistance levels:
R1 – 1.2360
R2 – 1.2390
R3 – 1.2421
Trading recommendations:
The GBP/USD pair continues its downward movement on September 27. Thus, traders are advised to continue buying the US currency with the targets of 1.2299 and 1.2268. Short positions can be maintained until the Heiken Ashi indicator turns upwards.
In addition to the technical picture, fundamental data and the time of their release should also be taken into account.
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) – the blue line on the price chart.
Support and resistance – red horizontal lines.
Heiken Ashi – an indicator that colors bars in blue or purple.
