20.06.201907:55 Forex Analysis & Reviews: Review for GBP / USD pair on June 20: The forecast for the "Regression Channels" system. The effect of the FOMC meeting outcome has overshadowed Brexit's negative background for some time

4-hour timeframe

Technical details:

Older linear regression channel: direction - down.

Younger linear regression channel: direction - down.

Moving average (20; smoothed) - sideways.

CCI: 103.7750

The Federal Reserve helped both the euro and the sterling pound unwittingly yesterday. The most interesting thing is that the Fed left the rate unchanged. They did not announce any easing of monetary policy in 2019 and did not notice "increasing" risks or uncertainty. That is, according to the regulator, the situation has not changed very much since the last meeting and the FOMC members did not find reasons to reduce the rate. However, from the very morning of yesterday, traders began to close "dollar" positions, which led to a loss of 120 points in the US currency at the current moment. Meanwhile, opposition leader Jeremy Corbin supported a second referendum in the UK. He told his party members that the time had come to "make a choice" for both Brexit supporters and opponents. However, in any case, the holding of a repeated referendum will depend on the Parliament. Many deputies can be against. Thus, a situation may arise as with Theresa May's "deal", which seemed to find some support among deputies but it was clearly not enough to accept its approval at the legislative level. Thus, the news is interesting but does not affect the promotion of Brexit. By the way, we recall that in the event of a UK exit from the EU, Scotland may hold its own referendum on independence since the country does not support a "divorce" from the European Union. A meeting of the Central Bank will be held in the UK today and in the evening, the speech of its head, Mark Carney. Now, the currency markets will follow the mood of the British regulator, respectively, the prospects for the pound sterling for the next few days will now depend on Karni's rhetoric.

Nearest support levels:

S1 - 1.2634

S2 - 1.2573

S3 - 1.2512

Nearest resistance levels:

R1 - 1.2695

R2 - 1.2756

R3 - 1.2817

Trading recommendations:

The GBP/USD pair has overcome the moving average line, hence, the trend has now changed to ascending. However, given the weakness of the bulls, we recommend extremely cautious purchases of the pound with targets of 1.2695 and 1.2756.

Selling the pound/dollar pair will be possible no earlier than the reverse consolidation under the movement with the targets of 1.2573 and 1.2512. Today, this can contribute to the Bank of England and the rhetoric of its chairman.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The older linear regression channel is the blue lines of unidirectional movement.

The junior linear channel is the purple lines of unidirectional movement.

CCI is 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.