Overview of GBP/USD on August 8th. Forecast according to the "Regression Channels". Jeremy Corbyn and his party declare war

4-hour timeframe

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Technical data:

The upper linear regression channel: direction – down.

The lower linear regression channel: direction – down.

The moving average (20; smoothed) – down.

CCI: 54.2880

In the United Kingdom, there is a new loud message every day. Just last night, we wrote that Boris Johnson, not having spent a month as Prime Minister of the country, has already fallen out of favor with the majority of parliamentarians. Of course, because of his passionate desire to implement a "hard" Brexit, and even bypassing the Parliament, knowing that the majority of 650 deputies will not support his initiative. Thus, in order to prevent an absolutely catastrophic scenario for the UK, Labor leader Jeremy Corbyn is ready to initiate a vote of no confidence in Johnson. His party has already outlined the vector of its work for the coming months – to prevent Brexit without a deal. Corbyn himself said that he was ready for a large-scale war with Johnson and will make every effort to block the destructive scenario for the Kingdom. However, not everything is so simple in the British Kingdom. The fact is that even if the vote of no confidence in Johnson is approved by a majority of deputies, a new government should be formed within the next 14 days. If this does not happen, the Parliament is dissolved and the date of new parliamentary elections is set. And the Prime Minister appoints this date. That is, Johnson can set a date for, for example, November 1, when the UK will leave the European Union without an agreement. However, there are options in which Johnson will not be able to carry out their plans. In general, we continue to observe the continuation of the epic "Brexit" from the first rows, and the key question now is: who will win in the confrontation with Johnson – opponents of "hard" Brexit. In the next few months, until October 31, there will be a lot of important and significant events. As for the pound sterling, it had no prospects for growth. Of course, technical growth is possible, which can be identified by fixing the pound/dollar pair over the moving average, but it is unlikely that it will be strong.

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 continues to adjust near the moving average and can neither resume the downward trend nor overcome the moving average. Technically, now there are actually buying of the greenback with targets at 1.2085 and 1.2024, as both linear regression channel is directed downwards. However, the bears openly rest in recent days.

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.

Heiken Ashi is an indicator that colors bars in blue or purple.

The material has been provided by InstaForex Company - www.instaforex.com