To open long positions on GBP / USD, you need:
Buyers will try to form a false breakdown at the support level of 1.3083, which will lead to an upward correction in the pound with an update of the resistance level of 1.3119. However, the main goal will be the breakdown and consolidation above the level of 1.3119, which will allow us to expect a larger increase to the highs of 1.3152 and 1.3186, where I recommend fixing the profits. Any positive news on Brexit will cause a sharp rise in the pound with a break of monthly highs around 1.3223. In the case of a decline below the support level of 1.3083, you can go back to the rebound from the lows of 1.3032 and 1.2982.
To open short positions on GBP / USD, you need:
It is necessary to sell a pound very carefully, as news on Brexit can provoke a sharp influx of buyers. Fixing below the support level of 1.3083 will increase the pressure on the pair, which will open a direct road to the weekly lows to 1.3032 and 1.2982 areas, where I recommend fixing the profits. An unsuccessful consolidation and return under the resistance level of 1.3119 in the first half of the day will also be a signal to sell the pound in order to break 1.3083. Otherwise, short positions can be opened for a rebound between 1.3152 and 1.3186. In the event of a sharp rise in positive news on Brexit, I advise you to abandon sales of the pound.
Indicator signals:
Moving Averages
Trade is conducted under the 30-and 50-day average, which indicates a further decrease in the pound. In the case of an upward correction, the 30-day average will play the role of good resistance.
Bollinger bands
A break of the lower border of the Bollinger Bands indicator around 1.3077 will be a direct signal to open short positions in the pound. The average border is at the level of 1.3115, which will limit the upward potential in pounds in case of a correction.
Description of indicators
- MA (moving average) 50 days - yellow
- MA (moving average) 30 days - green
- MACD: fast EMA 12, slow EMA 26, SMA 9
- Bollinger Bands 20
