FX.co ★ Overview of GBP/USD on August 30th. Forecast for the system "Regression Channels". The British pound "feels" the approaching finale

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) – sideways.

CCI: -122.7479

The situation with the suspension of the UK Parliament for 5 weeks has already been described by us several times. We have already talked about what is happening in the UK and what are the possible scenarios. Today, we want to focus on what could prevent Boris Johnson from implementing his plan to exit the European Union without any agreements. The first thing we would like to focus readers' attention on is that Boris Johnson can't help but understand what the consequences of a "hard" Brexit will be. This is said by the Finance Minister, the head of the Bank of England, a huge number of experts, but Johnson believes that the UK will "cope" with the shock. Further, most MPs do not support a "hard" Brexit. For the same reasons. And that's why it took the dissolution of Parliament for a new "vacation" to parliamentarians did not interfere with the implementation of Brexit. Further, if most of the Parliament is against the implementation of a "hard" Brexit, but it will not even be allowed to approve or block this decision of the Prime Minister, then what kind of democracy is it all about? It turns out that this is the decision of Prime Minister Johnson, which, incidentally, is actively supported by Donald Trump, who naturally quarrels the EU and Great Britain. It is the lack of democracy in the initiatives of Boris Johnson – this is the only chance to remove him from his post and block Brexit without agreement. It is at this point that Jeremy Corbyn will press, announcing a vote of no confidence in Johnson. Parliament is likely to support the vote, but even after it is announced, Johnson is not obliged to resign. It is only a tradition and custom to resign voluntarily if Parliament passes a vote of no confidence. Therefore, the question of the formation of a new government by Parliament is a secondary issue.

What do we have in the dry residue? Most parliamentarians, the UK population, experts, economists, and financiers do not support the "hard" Brexit. EU leaders warn London of serious consequences that will happen through the fault of the current government of the Kingdom. And only Donald Trump openly supports a speedy Brexit, calling Johnson "the Prime Minister that Britain needs" and promising a "grand" trade deal. Unfortunately, all the bargaining chips are in Johnson's hands, so the opponents of the "hard" Brexit can only hope for a miracle or some non-standard moves by Jeremy Corbyn and the opposition.

The British pound, meanwhile, is sliding to monthly lows. The bulls missed the initiative in the market, but this is very expected, as the fundamental background continues to put serious pressure on the position of the pound. The pound/dollar pair fixed below the moving average line, so the trend for the instrument changed to a downward one.

Nearest support levels:

S1 – 1.2146

S2 – 1.2085

S3 – 1.2024

Nearest resistance levels:

R1 – 1.2207

R2 – 1.2268

R3 – 1.2329

Trading recommendations:

The GBP/USD pair fixed below the moving average. Thus, it is recommended to sell the pair GBP/USD with the targets of 1.2146 and 1.2085, this is facilitated by the technical picture and fundamental background.

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

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.