19.07.201909:44 Forex Analysis & Reviews: Overview of GBP/USD on July 19th. The forecast for the "Regression Channels". The British Parliament beat Boris Johnson and Jeremy Hunt

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: 48.9155

Both British Prime Minister candidates Boris Johnson and Jeremy Hunt have repeatedly stated that the country needs to leave the EU on October 31, no matter what the "divorce" scenario is. Of course, Boris Johnson was more inclined to the "hard" scenario, if Brussels does not make concessions on the issue of the Northern Ireland border and, accordingly, does not agree to review the current version of the agreement reached by Theresa May. Jeremy Hunt admitted that the new negotiations will take a lot of time and the date of withdrawal from the EU will have to move again to a later date, but in the event that the EU flatly refuses to conduct new negotiations, he also did not deny the possibility of Brexit without a "deal". Since absolutely all parliamentarians, economists and ordinary citizens understand that the British economy is already bursting at the seams, and Brexit has not even been implemented, then after leaving the jurisdiction of Brussels, it will be even worse, and after leaving without an agreement – even worse. Accordingly, the British Parliament adopted a very predictable decision and voted for the amendment, which prohibits the Prime Minister to hold Brexit without the approval of Parliament. Thus, neither Hunt nor Johnson will be able to send Parliament to "leave" and to make the decision independently. Accordingly, the "hard" Brexit will not be possible if the Parliament does not approve of it. And the Parliament, most likely, will not approve. It is noteworthy that many conservatives voted for this amendment, which already suggests that not everyone supports the policy of Boris Johnson in the Conservative Party, however, they see him as the future leader. Anyway, it is necessary to wait now for the results of elections of the Prime Minister(on July 23) and Johnson's statement concerning the "game on an advancing" from Parliament.

Nearest support levels:

S1 – 1.2512

S2 – 1.2482

S3 – 1.2451

Nearest resistance levels:

R1 – 1.2543

R2 – 1.2573

R3 – 1.2604

Trading recommendations:

The GBP/USD pair is again fixed above the moving average. Thus, it is recommended to buy the pair, but in very small lots, since both channels are directed downwards, with targets at 1.2573 and 1.2604, and after Heiken Ashi's reversal, upward.

It will be possible to sell the pound/dollar pair with the goals of 1.2451 and 1.2421 not earlier than fixing the price 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.