21.10.201907:37 Forex Analysis & Reviews: Overview of GBP/USD on October 21st. Forecast according to the "Regression Channels". Brexit is delayed for another three months. If the EU approves the request for a delay

4-hour timeframe

Technical data:

The upper channel of linear regression: direction – up.

The lower channel of linear regression: direction – up.

The moving average (20; smoothed) - up.

CCI: 83.1004

Well, on Friday morning, we said that for the British Parliament to approve Johnson's "deal" with the EU, a miracle would be required. No miracle happened. The parliamentarians did not even consider the "deal" and immediately voted in favor of the bill obliging Boris Johnson to apply to the EU government with a request to postpone Brexit. In short, almost all opposition forces that did not support the new version of the agreement agreed that the current "deal" is practically no different from the "deal" by Theresa May. Moreover, for example, Jeremy Corbin, the leader of the Labor Party, thinks it is even worse. That is, there were no real grounds for the deputies to vote "for" this agreement. Well, Boris Johnson suffered a sixth defeat and continues to show himself as a politician who performs very well in public and removes unwanted party members from the road, but he cannot solve the problem, for which he won the election of prime minister.

Two letters from the British Prime Minister were sent to the leaders of the European Union, in particular, Donald Tusk, who confirmed through social networks that they were received. In one, Boris Johnson said that he was asking for a delay in the UK, in the second – adds that the first letter was the initiative of the Parliament, not his and that he considers any new postponement of Brexit a mistake, as if hinting that Brussels should not give consent. Also, according to unofficial information, Johnson called all the EU leaders and repeated his request not to give a delay on Brexit in telephone conversations. Also, Boris Johnson expressed confidence that by October 31, he will be able to convince the deputies and the agreement with the EU will still be ratified. In the last phrase lies the whole of Boris Johnson, the whole essence of his politics. Now it's clear to absolutely everyone that the Parliament will not approve the agreement, because it is no different from the agreement of Theresa May. What will change in the remaining 10 days? Johnson needs either an extraordinary parliamentary election or for the EU to refuse to move the Brexit date again. The election may not save the situation, as it is far from the fact that the conservatives will gain more votes than they currently have in parliament. The second option is now seen as generally fantastic, since the European Union does not want to lose the UK and does not lose hope of Jeremy Corbyn's victory, holding a second referendum and canceling Brexit. No one will publicly declare this.

Well, the pound practically did not react to all this news, maintaining its leading position against the dollar. A downward correction is possible today, but the markets have not experienced any disappointment. It seems that the sell-off of the pound will only follow if Johnson somehow manages to implement a "hard" Brexit.

Nearest support levels:

S1 – 1.2817

S2 – 1.2695

S3 – 1.2573

Nearest resistance levels:

R1 – 1.2939

R2 – 1.3062

R3 – 1.3184

Trading recommendations:

The GBP/USD currency pair continues its upward movement. Thus, it is still reasonable to support previously opened purchases of the pound with targets of 1.2939 and 1.3062. We still consider it a dangerous occupation to open new buy orders. Sales of the pound/dollar pair will be justified after traders overcome the moving average.

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

Explanation of the illustrations:

The upper channel of linear regression – the blue line of the unidirectional movement.

The lower channel of linear regression – the purple line of the unidirectional movement.

CCI – the blue line in the regression window of the indicator.

The moving average (20; smoothed) – the blue line on the price chart.

Support and resistance – red horizontal lines.

Heiken Ashi – an indicator that colors bars in blue or purple.