02.10.201815:20 Forex Analysis & Reviews: GBP / USD. 2nd of October. The trading system "Regression channels". Boris Johnson may take the post of Theresa May

Long-term review
4-hour timeframe

Exchange Rates 02.10.2018 analysis

Technical data:

The senior linear regression channel: direction - down.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - down.

CCI: -102.0403

The British pound sterling also continues to fall in price, and interesting news continues to come from the UK. First, an anonymous source from the Conservative Party of Great Britain said that Boris Johnson could postpone Brexit talks for at least six months if he became prime minister. By itself, the interpretation of "if you become prime minister" is alarming. In essence, this means that if May is overthrown, the new prime minister is already selected. And since such conversations take place, it means that the option with the resignation of May is not an empty phrase. At the same time, experts calculated how much Brexit UK currently costs. In a week, the country's economy loses about 500 million pounds, and yet the country has not even officially left the EU. Also, research shows that the UK is now the slowest-growing of developed countries. In principle, this is logical, given all the political and economic perturbations in Britain. However, what will happen after March 2019? What will happen if the "deal" with the EU does not take place? Most likely, the economic situation will worsen even more. And in this section, it becomes clear that there will be no fundamental support from the UK for the pound in the coming months.

Nearest support levels:

S1 - 1,3000

S2 - 1.2939

S3 - 1.2878

Nearest resistance levels:

R1 = 1.3062

R2 - 1.3123

R3 - 1.3184

Trading recommendations:

The currency pair GBP / USD resumed its downward movement after a slight correction to the moving average. The first target of 1.3000 is almost completed; if it is overcome, the next target for short positions will be Murray's "4/8" level - 1.2939.

It is recommended to open buy positions not earlier than traders overcome the moving average line. In this case, the trend in the instrument will change to ascending and the long positions with the target of 1.3184 will become relevant.

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

Explanations for illustrations:

The senior linear regression channel is the blue lines of unidirectional movement.

The lower linear channel is the purple lines of the unidirectional movement.

CCI is the blue line in the indicator regression window.

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

Levels of Murray - multi-colored horizontal stripes.

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

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2022
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