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: -120.4825
On Monday, July 8, the pound/dollar currency pair remains within the downward movement. The previous local minimum has been updated, so we can say with confidence that the downward trend has been resumed. On Saturday, July 6, Boris Johnson made another loud statement. He said that if he becomes Prime Minister, the UK will leave the EU on October 31 in any case, and the British Parliament need to stop being afraid of Brexit without a "deal". There are at least two contradictions in these words. First, Johnson has not yet become Prime Minister. Secondly, the British Parliament is against an exit without an agreement. Thus, we believe that the statement of Boris Johnson can now be interpreted as an empty promise, since there is little reason to assume that Britain will leave the EU on October 31. At the same time, it is the "hard" Brexit that remains the most likely exit option. And the most likely scenario for this epic, in our opinion, is the next postponement of the Brexit date, since the time of the future Prime Minister until October 31 will be no more than 3 months, which is not enough for new negotiations with Brussels. The British pound in this situation can only sympathize. Not only that statistics from America please the bears again, but also from the UK continues to receive one negative.
Nearest support levels:
S1 – 1.2512
S2 – 1.2451
S3 – 1.2390
Nearest resistance levels:
R1 – 1.2573
R2 – 1.2634
R3 – 1.2695
Trading recommendations:
The currency pair GBP/USD resumed its downward trend. Thus, traders are advised to continue to sell the pound sterling with the targets at 1.2451 and 1.2390 if the Heiken Ashi indicator turns down.
It will be possible to buy the pair pound/dollar in small lots with targets at 1.2634 and 1.2695 after fixing the price above the moving average. However, the bulls will need fundamental support, which will be extremely difficult to get now.
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.