26.06.201911:39 Forex Analysis & Reviews: Overview of GBP/USD on June 26. The forecast for the "Regression Channels". The differences in views on Brexit: Hunt and Johnson are only in the timing of exit from the EU

4-hour timeframe

Technical data:

The upper linear regression channel: direction – down.

The lower linear regression channel: direction – sideways.

The moving average (20; smoothed) – sideways.

CCI: -66.2897

Until recently, Jeremy Hunt, the second candidate for the post of British Prime Minister and Foreign Minister, remained in the shadow of Boris Johnson, who gave interviews left and right. However, yesterday, it became known about Hunt's views on Brexit. It turned out that Hunt also supports the "hard" Brexit scenario if the current agreement with the EU reached by Theresa May cannot be revised. Hunt also wants assurances that there will be no border between Northern Ireland and Ireland, but is willing to replace the proposed back-stop mechanism. However, unlike Johnson, who has already decided to leave the European Union before November 1, Hunt believes that the main thing is to reach the most "soft" agreement with Brussels, so as not to have catastrophic consequences for the economy. At the same time, Hunt notes that he is ready to be a "tough negotiator." The Foreign Minister also believes that if you focus on October 31, it can provoke early elections to the Parliament, hit hard on the strength of the Conservative Party, give an advantage to Labor and lead to the abolition of Brexit, as Jeremy Corbyn supports the idea of a second referendum. The pound sterling, meanwhile, in the pair with the US dollar overcame the moving average line and returned, thus, to the downward trend. If the bears manage to develop their success, it will lead to the resumption of the downward trend. Today will be the speech of the head of the Bank of England Mark Carney, which may affect the preferences of traders during the day.

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 failed to overcome the level of 1.2756, which led to a consolidation below the moving average. We now recommend a cautious sale of the pound sterling with a target of 1.2634, as the bears have not yet confirmed their intention to a new campaign to the South.

It will be possible to buy the pound/dollar pair in small lots with targets at 1.2634 and 1.2573 after the price is fixed back above the moving average. In this case, the bulls will receive a new opportunity to form an upward trend.

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.