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: 43.0039

In his actions on the international stage, Boris Johnson is becoming more and more like US President Donald Trump. Literally, in a "neighboring" article on the EUR/USD pair, we said that Trump's ratings are falling amid the displeasure of the American population with the impending recession, the reasons for which are precisely Trump's trade wars. Many people are also dissatisfied with Boris Johnson's actions. Starting with Parliament, which is openly fighting the Prime Minister, not forgetting to challenge any Johnson ruling in the courts. Ending with the population of the UK, which is also beginning to ask questions themselves – whether Johnson is the leader that the United Kingdom needs. For 2 months at the helm of the country, Johnson's policy did not lead to any positive changes. All the actions that Johnson wanted to carry out were blocked by the Parliament, having considered them, at least, not necessary for the country, at most, destructive. Prime Minister's efficiency? 0%.

The Supreme Court will sit today to hear the case of Johnson's prorogation of Parliament. According to many experts, after a similar decision of the court of Scotland, the Supreme Court finds Johnson's actions illegal, having also managed to circumvent the approval of these actions by Queen Elizabeth II. Since the monarch in Britain does not make decisions in the literal sense of the word, but only approves the requests of the prime minister, the shadow will not fall on her, although it was Elizabeth II who, by and large, sent the deputies on leave. Thus, soon, deputies can return to the performance of their duties.

Meanwhile, during Boris Johnson's working visit to Luxembourg, British citizens living in the country disrupted their Prime Minister's press conference. It is reported that almost all Britons were opponents of Brexit by Boris Johnson. At the same time, the leader of Luxembourg Xavier Bettel continued the press conference and took advantage of the absence of his colleague saying that "the whole process of Brexit has turned into a nightmare, and the UK has not provided any alternative options for an amicable "divorce" with the European Union." "The future of all British citizens is in his hands," Bettel said, pointing to the empty podium.

We also remind you that many of the words and promises of Boris Johnson, at least, do not find confirmation in other sources, and at most, are not confirmed by anything at all. We are talking about Johnson's statements about "significant progress in negotiations with the EU", which the EU itself denied a few hours later.

From a technical point of view, the pound/dollar pair started a downward correction but maintains a strong upward trend, located above the moving average. Thus, we are waiting for the completion of the correction and the resumption of upward movement.

Nearest support levels:

S1 – 1.2390

S2 – 1.2329

S3 – 1.2268

Nearest resistance levels:

R1 – 1.2451

R2 – 1.2512

R3 – 1.2573

Trading recommendations:

The GBP/USD pair began to adjust. Now, traders are recommended to wait for the completion of correction and buy the pound with the targets at 1.2512 and 1.2573. It is recommended to sell the pound sterling not before the bears break the moving average line.

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

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) – the blue line on the price chart.

Support and resistance – red horizontal lines.

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