Overview of GBP/USD on September 13th. The forecast on the "Regression Channels" system. Boris Johnson claims that he did

4-hour timeframe


Technical data:

The upper channel of linear regression: downward direction.

The lower channel of linear regression: direction – up.

The moving average (20; smoothed) – up.

CCI: 32.8174

The latest news from the UK relates to the topic of Brexit and concerns the Yellowhammer document and the Scottish High Court ruling on the illegality of the decision of Boris Johnson and the propaganda of Parliament. The first issue has already been discussed, moreover, it was more or less clear that the "hard" Brexit will not bring the country anything good, and the document "Yellowhammer", published on the government website, at the request of parliamentarians, only proved it. At the same time, Boris Johnson's cabinet refused to publish all correspondence of politicians involved in the discussion of the "hard" Brexit cabinet. What immediately provoked a new batch of criticism from the opposition, who suspected the Prime Minister of concealing much more important information than the one that was published. The second question concerning the decision of the court of Scotland is more interesting. Since, firstly, the work of parliament can be resumed in the near future, it remains only to obtain a decision of the Supreme Court, which will consider the case on September 18. And secondly, there are growing suspicions that Boris Johnson lied to Queen Elizabeth II when he said that the suspension of parliament is only necessary to prepare a new government program. The main point of this story is that the more British citizens will be disappointed with Johnson's actions, the less chance he and his party will win the re-election to the Parliament, which the Prime Minister himself has already tried to initiate twice. And the opposition's actions are clear and understandable – to expose Boris Johnson in the most unfavorable light possible, especially since many of his actions do not even need to artificially give a "gray" color. Why, in fact, Johnson had a vacation for the deputies, obviously.

The calendar of macroeconomic events in the UK on Friday is empty. Thus, traders will have to analyze only two reports from the States, as well as all the information coming from the political sphere of the UK. The technical picture of the pair indicates the continuation of the upward trend. Yesterday, there was an unsuccessful attempt to overcome the moving average line.

Nearest support levels:

S1 – 1.2329

S2 – 1.2268

S3 – 1.2207

Nearest resistance levels:

R1 – 1.2390

R2 – 1.2451

R3 – 1.2512

Trading recommendations:

The GBP/USD currency pair completed a round of downward correction. Thus, traders are advised to resume buying the pound with the targets of 1.2390 and 1.2451 until the next reversal of the Heiken Ashi indicator down. It is recommended to return to the sales of the British currency, not before the pair fixes below the moving average line.

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 is an indicator that colors bars in blue or purple.

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