To open long positions for GBP/USD, it is required:
Buyers of the pound are in no hurry to return to the market, as there are no changes with Brexit, and November 20 is getting closer and closer. You can count on long positions after the return and consolidation at the resistance level of 1.2907, which will lead to a larger growth of the GBP/USD and an update of the resistance of 1.2954, where I recommend today to lock in the profit, since it is there that the upper limit of the new downward channel can be formed. In case of further decline, the pound can be bought on a rebound from the major support of 1.2845 and 1.2767.
To open short positions for GBP/USD, it is required:
The breakout and consolidation below the support of 1.2907 will be a direct signal to open short positions in the pound in order to reduce and update the low in the area of 1.2844 and 1.2767, where I recommend taking profits. In case the pound increases in the first half of the day above 1.2907, it is better to return to short positions on a rebound from the large resistance of 1.2954, where by that time the 30-day moving average will take place, or on a rebound from the high of 1.3024.
Indicator signals:
Moving averages
Trading is conducted under the 30-day and 50-day average, which indicates a further decline in the pound.
Bollinger Bands
The return of the pound to the average border of the Bollinger Bands indicator in the area of 1.2960 will be a sell signal.
Indicator description
Moving Average (average sliding) 50 days - yellow
Moving Average (average sliding) 30 days - green
MACD: fast EMA 12, slow EMA 26, SMA 9
Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com