05.09.201907:52 Forex Analysis & Reviews: Overview of GBP/USD on September 5th. Forecast according to the "Regression Channels". Boris Johnson's double defeat in Parliament

4-hour timeframe

Technical data:

The upper channel of linear regression: direction – down.

The lower channel of linear regression: direction – up.

The moving average (20; smoothed) – up.

CCI: 110.9240

Well, the victory of the British Parliament over the Prime Minister was won and now parliamentarians can safely go on a new vacation on September 9th. Yesterday was an interesting session of Parliament, which we partially reviewed in this article. The evening events in Parliament were as follows. First, Boris Johnson once again threatened Parliament with early elections if deputies pass a bill blocking Brexit on October 31. Earlier, Boris Johnson pressed at that moment that, according to him, he wants to conclude a "deal" with the European Union, but the deputies should not interfere with this. These words were ridiculed by Jeremy Corbyn and the opposition. Further, the UK Parliament passed a bill prohibiting the UK from leaving the European Union, if the government does not conclude a "deal". 327 deputies voted "for", 299 voted "against". Thus, unless by some miracle Johnson fails to agree with the EU before October 31, then there will be no Brexit on October 31. This means that Brexit has already been postponed to a later date. Naturally, after that, Boris Johnson initiated a vote for an early election and lost again. 298 deputies voted "against", 56 voted "for". Recall that to initiate early elections, at least 434 deputies must vote "for". It seems that the prime minister has forgotten that he is not the only one making decisions in the country, and 650 deputies can safely reject his proposals and initiatives. This is weird. The battles between Theresa May and Parliament did not teach Johnson anything. What now? The pound can now breathe easy. In the remaining 4 days, parliamentarians can pass a vote of no confidence in the Prime Minister, but this is not so important. It is more interesting what Boris Johnson himself will do now and what comments he will give in the media. The deputies, Jeremy Corbyn, the opposition, the conservatives themselves will be charged with "betrayal of the people's decision", Johnson will try to put himself in the most favorable light, they say he only wants to realize the will of the people, and the Parliament does not allow him to do it, as before letting Theresa May do it. However, all this does not matter. Brexit must be rescheduled again, which means that the Parliament has time to prepare for a new war with Johnson, to prevent a "divorce" from the EU without an agreement.

On a wave of optimism, the British pound continues its upward movement and reached the Murray level of "+ 1/8 " - 1.2268. From a technical point of view, if the pair pound/dollar will renew the last high (1.2309), this will greatly increase the chances of the formation of the upward trend.

Nearest support levels:

S1 – 1.2207

S2 – 1.2146

S3 – 1.2085

Nearest resistance levels:

R1 – 1.2268

R2 – 1.2329

Trading recommendations:

The GBP/USD pair has broken the moving. Thus, it is now recommended for traders to trade up the GBP/USD pair with targets at 1.2268 and 1.2329, it is not too zealous, as the positions of the bulls are not too strong yet, but the fundamental background no longer exerts strong pressure on the British currency.

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 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) – blue line on the price chart.

Murray levels – multi-colored horizontal stripes.

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