FX.co ★ Overview of GBP/USD on August 7. Forecast according to the "Regression Channels". Former Fed chiefs believe that the Fed should be an independent regulator

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: 65.1752

The pound sterling has been adjusting in the last few days and has managed to work out the moving average line over these few days. Needless to say, this growth is quite difficult to call growth. Most likely, a small part of bear traders reduced part of their sales, which led to a minimum strengthening of the British currency. From the UK, there have been very few reports of Brexit recently. Boris Johnson and his team "calmed down" and continue to prepare for the "hard" Brexit, and the European Union continues to monitor the situation. Meanwhile, former Fed heads, Paul Volcker, Alan Greenspan, Ben Bernanke and Janet Yellen, gave an interview to a major publication, which reported that the regulator should remain independent of political pressure of any nature and scale, and the will of the Fed should not depend on a small group of politicians or one politician. Also, former heads of the Fed believe that Powell should be able to safely perform their work without pressure in the form of threats of resignation or demotion. According to some reports, Trump began to study the possibility of the removal of Powell from office, however, according to many experts, it will be extremely difficult to implement. Powell himself said that he would not resign voluntarily, even if the President asked him to do so.

On Wednesday, August 7, the UK calendar is empty, so we do not expect volatility growth. The price rebound from the moving can provoke new sales of the pound/dollar pair.

Nearest support levels:

S1 – 1.2146

S2 – 1.2085

S3 – 1.2024

Nearest resistance levels:

R1 – 1.2207

R2 – 1.2268

R3 – 1.2329

Trading recommendations:

The GBP/USD pair has adjusted to the moving average, so now it is still recommended to consider the sale of the pound sterling with the goals of 1.2085 and 1.2024, but after the reversal of the Heiken Ashi indicator down.

It will be possible to buy the pair pound/dollar with minimum lots with the targets of 1.2268 and 1.2329 no earlier than fixing the price above the moving average line. However, the British currency does not have special reasons for growth, except for technical ones.

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.