To open long positions on GBP/USD you need:
The pound strengthened after yesterday's proposal by a member of Parliament to block the current Brexit deal, which will automatically lead to a postponement of the UK exit from the EU and relieve tensions in this matter. Today, it would be best to consider new purchases of GBP/USD after the formation of a false breakdown in the support area of 1.2963 or at a rebound from the low of 1.2903. The main objective will be a breakthrough above the resistance of 1.3016, which will lead to a new wave of growth in GBP/USD with an update of monthly highs of 1.3064 and 1.3127, where I recommend to fix profits. In case of weak fundamental data, which are expected in the first half of the day, you can look at long positions from the lower border of the side channel of 1.2935.
To open short positions on GBP/USD you need:
Failing to fix above the resistance of 1.3016 will be the first signal to open short positions in the pound, but the main task will be to return to a support level of 1.2963, which will lead to the demolition of yesterday's buyers' stop orders and a larger downward correction to areas 1.2903 and 1.2835, where I recommend taking profits . In case of a further uptrend, it is best to consider short positions from the new highs of 1.3064 and 1.3127.
Indicator signals:
Moving averages
Trade is conducted above the 30-day and 50-day moving, indicating a continuation of the bullish trend in the short term.
Bollinger bands
In case of a decrease in the pound, you can open long positions immediately to a rebound from the lower border of the Bollinger Bands indicator around 1.2905.
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
