To open long positions on GBP / USD, you need:
A sharp reversal of the market in the direction of purchases of the pound, after its major drop yesterday in the Asian session, may lead to the renewal of new highs around 1.2717 and 1.2765, but for this, you need to get out above the resistance of 1.2655 and gain a foothold on it. Help buyers in this data on the field of servants, which go out today in the morning. In the case of a downward correction, it is best to consider long positions in the pound to rebound from support at 1.2564, with a short stop order below.
To open short positions on GBP / USD, you need:
It is unlikely that a serious demand for the British pound will continue against the background of events that cast doubts that Theresa May will be able to carry out an agreement on Brexit through parliament. An unsuccessful consolidation above 1.2655 with a return below this level will be a signal to sell the pound, and a breakdown of 1.2618 will lead to a larger sale of GBP / USD with a test of 1.2564, where I recommend fixing the profits. The main task of sellers will be a return to major support of 1.2500. In the case of growth above 1.2655, against the background of good statistics on the service sector, it is possible to open short positions on the rebound from the resistance of 1.2717.
Indicator signals:
Moving Averages
Trade is conducted in the area of 30-day and 50-day moving averages, which indicates that the market is lateral in nature.
Bollinger bands
In the case of a decrease in the pound, support will be provided by the lower limit of the Bollinger Bands indicator around 1.2564, from which you can open long positions. The upward trend may be limited by the upper limit of the indicator 1.2676, from which pound sellers will return to the market.
MA (moving average) 50 days - yellow
MA (moving average) 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