To open long positions on GBP/USD you need:
As it became known yesterday, British Prime Minister Theresa May is preparing a series of changes to the Brexit agreement related to the Irish border, which maintains the demand for the British pound. Currently, bulls require a quick return and consolidation above the resistance of 1.2895, which will lead to a larger upward trend in the area of a high of 1.2944 and 1.3006, where I recommend to fix profits. In case the pound declines in the first half of the day, it is best to look at long positions on a false breakdown around 1.2833 or on a rebound from the low of 1.2752.
To open short positions on GBP/USD you need:
Failing to fix above the resistance at 1.2895 will be the first signal to open short positions in the pound, but the main task will be a breakthrough of the support level of 1.2833, which was not possible yesterday. Only after the breakdown of this range will the downtrend resume, which will lead the GBP/USD to the lows of 1.2752 and 1.2679, where I recommend taking profits. In case of an uptrend on the news on Brexit, it is best to consider short positions from the highs around 1.2944 and 1.3006.
Indicator signals:
Moving averages
Trade is conducted in the area of 30-day and 50-day moving, which indicates market uncertainty.
Bollinger bands
The volatility of the Bollinger Bands indicator is low, which does not give signals to enter the market.
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
