To open long positions on GBP / USD, you need:
The situation in the pound has not changed, except that buyers managed to keep the support level of 1.3137, which leaves hope for the continued growth of the pound. In the evening, another vote will be held on Brexit in the British Parliament, which can support the British pound, provided that it is possible to agree on a transfer of the date of exit from the EU. The breakthrough of the resistance level of 1.3186 will be a signal to new purchases of the pound in order to update the maximum of 1.3257 and 1.3348, where I recommend fixing the profits. In the case of a decrease in the pound below the support level of 1.3137, it is best to return to long positions to rebound from the lows of 1.3077 and 1.3013.
To open short positions on GBP / USD, you need:
Under the scenario, if the Brexit agreement is not accepted, exactly like the changes that Theresa May offers today, the pressure on the pound may increase. The repeated test of the support level of 1.3137 will be the first signal to open short positions in order to decrease to the area of 1.3077 and 1.3013, where I recommend fixing the profit. In the case of a pound rising above 1.3186, it is best to consider new sales, provided that a false breakdown is formed in the resistance area of 1.3257 or on a rebound from the maximum of 1.3348.
Indicator signals:
Moving Averages
Trade has moved to the area of 30-day and 50-day moving, which indicates the possible formation of a downward corrective trend.
Bollinger bands
Bollinger Bands indicator volatility has decreased, which does not give signals on market entry.
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
