15.07.201907:23 Forex Analysis & Reviews: Overview of GBP/USD on July 15. The forecast for the "Regression Channels". Jeremy Hunt believes that instead of Brexit, there will be early elections

4-hour timeframe

Technical data:

The upper linear regression channel: direction – down.

The lower linear regression channel: direction – down.

The moving average (20; smoothed) – sideways.

CCI: 86.8250

The British pound sterling overcame the MA with great difficulty, so there were small hopes for the strengthening of this currency during the current week. This chance for the pound was provided by Jerome Powell, the head of the Fed, with his "dovish" rhetoric in his speeches in Congress. At least, this is how it was understood by both experts and traders. But what next? Now, the pound needs new fundamental support that does not exist. Moreover, news from the UK continues to come in, which, it seems, are not completely negative, but have exactly this shade. For example, the Foreign Minister and candidate for the post of Prime Minister Jeremy Hunt believe that the failure in the negotiations on Brexit conditions could lead to new parliamentary elections. It is difficult to say what kind of negotiations Hunt has in mind if Brussels refused to conduct any negotiations with London. Hunt may be referring to negotiations between parliamentarians to accept Theresa May's deal, but that's also questionable. One way or another, early parliamentary elections will convince the public and traders that the UK is no longer just a political crisis, but political chaos. Parties and deputies do not know how the country should leave the EU, there is no consensus, Boris Johnson threatens to withdraw the country under the option "No Deal". What to expect from the pound in such conditions?

Nearest support levels:

S1 – 1.2543

S2 – 1.2512

S3 – 1.2482

Nearest resistance levels:

R1 – 1.2573

R2 – 1.2604

R3 – 1.2634

Trading recommendations:

The GBP/USD pair continues the upward correction, breaking the MA. Thus, traders are advised to consider the minimum long positions with targets at 1.2604 and 1.2634 before the reversal of the indicator Heiken Ashi down.

It will be possible to sell the pound/dollar pair with the targets of 1.2482 and 1.2451 after fixing the price back below the moving average line.

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.