To open long positions on GBP/USD is required:
So far, British Prime Minister Theresa May can't reach an agreement on Brexit, and it is possible only if the issue is resolved with the Irish border. For buyers, hope remains at the support level of 1.2482, the formation of a false breakdown on which, with confirmation of the divergence on the MACD indicator, will be a good signal to buy the pound in order to return and consolidate above the resistance of 1.2534. Only after that can we talk about a larger upward correction in the resistance area of 1.2580 and 1.2626, where I recommend to take profit. In case of a further decline in the pound trend, good support levels are seen in the area of 1.2454, 1.2429 and 1.2405.
To open short positions on GBP/USD is required:
The formation of a false breakout at the resistance level of 1.2534 with a rebound from the 30-day moving average will be a signal to sell the pound in order to break and consolidate below the support of 1.2482, which will lead to a major sell-off of the GBP/USD with an exit to the lows of The main target will be the area of 1.2405, where I recommend to take profit. In case of a larger upward correction, you can look at short positions on the rebound from the resistance of 1.2580.
Indicator signals:
Moving averages
Trading is conducted under 30-day and 50-day moving averages, which indicates the bearish nature of the market.
Bollinger Bands
The upward correction in the pair will be limited by the upper limit of the Bollinger Bands indicator in the area of 1.2609, the test of which will be a sell signal. In case the pound decreases, you can look at the long positions on the rebound from the lower border, which is located in the area of 1.244.
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
