4-hour timeframe

Technical data:

The upper linear regression channel: direction – down.

The lower linear regression channel: direction – down.

The moving average (20; smoothed) – down.

CCI: 30.3594

We have already written that Scotland, whose residents mostly voted "against" leaving the EU in the 2016 referendum, has repeatedly hinted at preparing for its own referendum on independence. Prime Minister Nicola Sturgeon believes that "hard" Brexit is very strong and will harm both the British economy and the Scottish economy, however, if it does not work out, the country may initiate its own break with London in the future. However, that's not all. There is a lot of displeasure on the island of Ireland, where between the two countries (Ireland and Northern Ireland), as a result of Brexit, a "tight" border may appear, since Ireland will remain part of the European Union, but Northern Ireland, as well as Scotland, will have to leave the EU. And the inhabitants of Northern Ireland also in the majority voted "against" Brexit. At the same time, Northern Ireland has the constitutional right to hold a referendum on independence. Boris Johnson has already visited the Irish island, during which he promised that there would be no backstop mechanism. However, everyone understands that if Brexit is disordered, the border will appear. Ireland and Northern Ireland, by the way, can initiate unification into one country. It is clear that this is not possible if one country remains in the EU, and the second – in the UK. Accordingly, geopolitical shifts are also possible here. However, for the United Kingdom, which may soon become just a Kingdom, this means potential new losses of territories. And for the pound, this means no positive news and no reason for any growth. If the EUR/USD pair is corrected at least from time to time, then the pound/dollar, instead of the correction, just "rests" in one place and waits for new fall factors to appear.

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 continues to adjust for the purpose of moving; therefore, it is still recommended to consider the sale of the pound with the targets of 1.2085 and 1.2024, but after the Heiken Ashi indicator has turned down.

It will be possible to buy the pound/dollar pair with the targets of 1.2268 and 1.2329 not earlier than fixing the price above the moving average line. In this case, the bulls will have a chance to form an upward trend.

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

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) - a blue line on the price chart.

Murray levels - multi-colored horizontal stripes.

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