4-hour timeframe

Technical details:

Older linear regression channel: direction - down.

Younger linear regression channel: direction - down.

Moving average (20; smoothed) - up.

CCI: 108.9764

The British pound stopped yesterday like the euro currency on June 20 in its defense during the American trading session. A corrective movement has not yet begun and the previous local maxima are not updated. Therefore, we can say that there is every chance to see in the near future not only a downward correction but also a resumption of the downtrend for the GBP/USD pair. The outcome of yesterday's meeting of the Bank of England, by and large, comes down to: "since it's not known how Brexit will end, we'll not change anything and wait. As we said earlier, it is Brexit that makes the pound. The Bank of England and the whole of Great Britain remain in limbo. In the case of a "tough" scenario, the British regulator does not rule out easing of monetary policy. Yesterday, the second place was taken by the current foreign minister, Jeremy Hunt, in the last round of elections for the post of leader of the Conservative Party, wherein Boris Johnson won again. Now, there will be a final vote, where 160,000 party members will take part, and it will be known around July 20–22 who won. It is after this date that Brexit becomes active again and the new prime minister will begin work in this direction. What exactly will make the new prime minister, it is difficult to say. In general, all the complexity in the situation with Brexit remains the same.

Nearest support levels:

S1 - 1,2695

S2 - 1.2634

S3 - 1.2573

Nearest resistance levels:

R1 - 1.2756

R2 - 1.2817

Trading recommendations:

The GBP/USD pair has overcome the moving but can now start to be adjusted. Given the weakness of the bulls in any case, we recommend extremely cautious purchases of the sterling pound, which should be closed when the Heiken Ashi indicator turns down.

Selling the pound/dollar pair will be possible not earlier than the reverse consolidation below the movement with the targets at 1.2573 and 1.2512. In this case, a resumption of the downward trend is likely.

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

Explanations for illustrations:

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

The junior linear channel is the purple lines of 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.

Murray levels - multi-colored horizontal stripes.

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