22.10.201907:33 Forex Analysis & Reviews: Overview of GBP/USD on October 22nd. Forecast according to the "Regression Channels". The UK Parliament has blocked the Brexit vote

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: 109.0558

It seems that Brexit, which has already reached an outright impasse (or better to say, did not get out of it), will still be decided by the citizens of the UK. Parliament shows an amazing inconsistency and frank difference of opinion between different political forces. As we said yesterday, the majority of votes for one opinion or another simply does not exist. Therefore, the deputies cannot make a clear decision on what to do next, but simply constantly transfer Brexit to a later date. On the one hand, it's clear that Brexit itself is an extremely important page in British history, and we cannot allow it to be such after which the country will "rise from its knees" for about 10 years. On the other hand, why didn't this question in principle arise in 2016 when the referendum was held? Then no one could have thought that the whole epic would drag on for 3 years, and possibly more since at the moment, the "divorce" could be postponed again.

Boris Johnson is losing not only the support of the Parliament (it was not there from the very beginning of his reign) but also the support of his party members. Johnson has not won a single victory in his few months at the helm of the state. The "deal" that he proposed to Parliament resembles the "deal" of Theresa May, which the deputies rejected three times. Thus, we get some kind of vicious circle that the European Union does not allow to open up. It is the European Union, which according to unofficial information still wants to keep Britain in its composition, does not want to make significant concessions that would satisfy British deputies. It was an initiative of Great Britain – to leave the EU, respectively, not the European Union should do everything to satisfy the wishes of the other side and make Brexit as "soft" as possible. We believe that a change in the composition of the Parliament, a change in the Prime Minister will not help in any way to resolve the differences that exist between the European Parliament and the British Parliament. Even if Johnson manages to initiate re-election, it is unlikely that the Conservatives will manage to significantly increase their presence in the Lower House. An additional 5-10 votes can, of course, be decisive. Or they might not. Then what? New re-election? In such a situation, we believe that the best solution is Jeremy Corbyn's proposed second referendum. Let the people, by whose will the Brexit procedure was launched in 2016, decide now whether he wants to extend the "marleison ballet" for a few more years?

The pound, for which any delay of the "hard" Brexit, like an injection of adrenaline, continues to quietly rise in price. At the moment, the pound/dollar pair has overcome the Murray level of "6/8" and shows no desire to even start a downward correction.

Nearest support levels:

S1 – 1.2939

S2 – 1.2817

S3 – 1.2695

Nearest resistance levels:

R1 – 1.3062

R2 – 1.3184

R3 – 1.3306

Trading recommendations:

The GBP/USD currency pair continues its upward movement. Thus, traders are encouraged to support previously opened purchases of sterling with targets of 1.3062 and 1.3184. We still consider it quite dangerous to open new buy orders. Sales of the pound/dollar pair will be justified not earlier than by the moving average traders.

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) – blue line on the price chart.

Support and resistance – red horizontal lines.

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