Updated: Jul 29, 2019
Looking again on Weekly chart for Bigger Picture ,
We have been watching GBP facing strong bearish pressure just because Boris Johnson may become prime minister , but come on guys .. Conservative party has always been pro brexit , but nobody is ready for No deal brexit , we have seen probability of No deal brexit fail multiple times , practicaly there is nothing which Mr. Boris can do which Theresa May has not already tried and failed , Boris Johnson is just trying to polarise pro brexiteers in order to become PM which would have not been possible otherwise , so as per now GBP has been victim of opportunist politicians who would say anything for personal gain .
But as we have seen , there is too much of difference between saying and doing , Saying that Hard brexit is better than No brexit is easier than actually preparing for same & we have already witnessed how British MP's were unprepared for outcome of their own mistake '' allowing brexit referendum '' .
One thing which we understood from unpreparedness of Britain in timely exit that they overplayed their hand , and miscalculated completely strength of European Union .
This show of willingness to leave EU without a deal is probably going to end soon once personal gains for becoming PM are realised & parliament will again dictate the process. We expect a compromise for mutual benefit of UK and EU in coming months and then more of fundamentals & technical to dictate GBP strength and weakness rather than some political comments.
Technically on weekly chart we can see an ascending channel from Lows of brexit voting result day till now , we may also notice another minor channel which has been broken recently , we are trading in area which has not been seen recently and GBP down by political pressure only, we don't think that pressure is enough to break below weekly channel & it would take a really drastic turn of events to push GBP lower , we may see price rivisiting 1.2450 zone on political events , but close below channel is not expected , where as to the upside we can see strong possibilities and space to move , GBP is also trading way below its fairvalue which must support its movement towards up.
We would be watching closely weekly levels of GBP in coming days and look to LONG strongly towards 1.35 zone.