FX.co ★ Review GBP / USD. 5'th of July. The forecast for the system

4 hour timeframe

Technical data:

The upper linear regression channel: direction - down.

The lower linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -66.3750

On Friday, July 5, the pound / dollar currency pair is trading near Murray's level "0/8" - 1.2573 without any sharp fluctuations and with minimal volatility. Today, we expect the markets to "wake up", as there will be enough reasons for this. Today is very important for the pound sterling. The pair is near its local minima and overcoming them will remove the psychological barrier from the bears, who will again rush to sell the pound. Today, the British currency will wait again for support from the United States, it cannot wait for the UK in a very long time. The most famous British politicians continue to discuss Brexit instead of, as stated earlier by May, "to unite in difficult times." First, Theresa May said that "Brexit is becoming a problem for the British", after which candidates for the replacement of Theresa May, Jeremy Hunt, and Boris Johnson who, however, did not report anything new, once again focused on the fact that one should complete the procedure of withdrawing from the jurisdiction of Brussels until October 31. It is very good that the pound sterling has ceased to react to rumors, speculations, and expectations, as it was before. Otherwise, we would have caught the British currency already around 1.1 - 1.15. Traders intend to act upon the accomplishment of a particular event. So far, in the UK, nothing happens except organizing talks, so the main attention of traders is focused on the macroeconomic statistics from the States. However, the pair pound / dollar is still inclined to fall.

Nearest support levels:

S1 - 1.2573

S2 - 1.2543

S3 - 1.2512

Nearest resistance levels:

R1 - 1.2604

R2 - 1.2634

R3 - 1.2665

Trading recommendations:

The GBP / USD currency pair has stalled and is now waiting for news. Thus, it is recommended to continue selling pound sterling with targets at 1.2543 and 1.2512, if the Heiken Ashi indicator does not turn up.

It will be possible to buy a pair of pound / dollar in small lots with targets of 1.2665 and 1.2695 after fixing the price above the moving average. However, to do this, the bulls will need fundamental support, which will be extremely difficult to obtain.

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

Explanations for illustrations:

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

The lower 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.