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4-hour timeframe
Technical data:
The upper linear regression channel: direction – down.
The lower linear regression channel: direction – down.
The moving average (20; smoothed) – down.
CCI: -101.8874
On Tuesday, July 9, the currency pair pound/dollar continues to weaken the downward movement but cannot yet overcome the Murray level of "5/8" - 1.2512. As in the European Union, yesterday there were no significant economic publications in the UK. Boris Johnson and Jeremy Hunt continue to give interviews and participate in various programs designed to acquaint the population with the peculiarities of their policies. However, the choice of two candidates will not be the population, but 160,000 members of the Conservative Party. It is interesting that Johnson has repeatedly stated that the UK is ready for a "hard" Brexit scenario, that the money in the country's budget will be enough to cover the negative consequences of such an exit from the EU. And yesterday, the British Minister for Brexit Stephen Barclay said that to avoid the "hard" Brexit, the EU needs to enter into new negotiations with London. That is, Britain's top officials continue to try to persuade Brussels by threatening "tough" Brexit. It seems that this is the only trump card on the markets of British politicians. "Hard" Brexit is not beneficial to Britain as well as the European Union. Barclay also said that it is in the interests of both sides to avoid a "divorce" without an agreement and to solve the problem of the agreement through Parliament. In our humble opinion, this is a problem only for the UK, not the EU. Today, there are no interesting events in the calendar of macroeconomic events. You can only pay attention to the speech of Powell in the US Congress.
Nearest support levels:
S1 – 1.2512
S2 – 1.2451
S3 – 1.2390
Nearest resistance levels:
R1 – 1.2573
R2 – 1.2634
R3 – 1.2695
Trading recommendations:
The currency pair GBP/USD continues its downward trend. Thus, traders are advised to continue to sell the pound sterling with targets at 1.2451 and 1.2390.
Buy the pair pound/dollar will be small lots with targets at 1.2634 and 1.2695 after fixing the price above the moving average line. However, to do this, the bulls will need fundamental support, which will now be extremely difficult to obtain.
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.
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